GUTA strongly kicks against government’s new taxes
Both the planned adoption of a Value-Added Tax (VAT) on energy costs and the imposition of an emission fee have been met with criticism from the Ghana Union of Traders Association (GUTA), which has expressed its objection to both these proposals.
To put it another way, the Union believes that these taxes would have a negative impact on the economy of enterprises that are now functioning in Ghana.
According to GUTA, the organisation is certain in its belief that the implementation of these extra fees would act as a burden on enterprises, hence increasing the already high cost of conducting business in the nation.
Businesses, particularly those that are highly dependent on power for their operations, would be directly impacted by the proposed value-added tax on telecommunications and electricity rates. According to a statement released by the Union, “such businesses will face increased financial strain, which could potentially lead to reduced production capacity, layoffs, and even business closures, and ultimately could impede economic progress and dampen opportunities for job creation.”
Read excerpts of the release below:
Furthermore, the implementation of the emission levy will further compound challenges in terms of double taxation and lack of electric vehicles infrastructure like charging stations and reliable source of power.
Ghana already collects energy taxes, including petroleum tax on gasoline, diesel, kerosene and LPG.
GUTA urges the government to reconsider these measures and engage in thorough consultations with key stakeholders, including the business community, before implementing any new taxation policies. It is crucial that the voices and concerns of businesses are heard and taken into account to ensure policies that do not hinder economic growth and investment.
GUTA encourages the government to explore alternative means of revenue generation that do not place undue burdens on businesses.
