Economy

Businesses and Unions join forces to call for tax reform and fairer practices

27views

The business community and trade unions have expressed concerns over customs regime issues such as sub-standard goods and under-invoicing, which they believe are stifling the growth of both local and foreign businesses. They are advocating for policies that ensure better pricing and simpler tax regimes.

Speaking at a Customs Controls and Regulations Forum in Accra, themed “Promoting fair market practices that stimulate economic growth” and organized by the Ghana Investment Promotion Centre (GIPC), Tjalling Wiarda, General Manager of the Ghana Netherlands Business and Culture Council (GNBCC), highlighted the burden of high import taxes on their members. “The taxation on imports is substantial, with taxes making up nearly 7 per cent of the import value, becoming increasingly expensive,” he noted. He also pointed out the detrimental impact of benchmark value import duties on businesses.

Dr. Isaac Obeng, President of the Ghana Union of Traders Association (GUTA), identified several issues affecting local businesses, including dumping, abuse of the rules of origin, under/over-invoicing, and high import levies.

He explained that local manufacturers are being undermined by cheating, criminal activities, and the influx of low-cost goods from countries like China, leading to unfair competition and market disruptions. Despite state institutions’ efforts to address these problems, challenges persist due to regional trade dynamics and inadequate enforcement of trade regulations.

“We pay many taxes, yet our tax-to-GDP ratio remains low. Over-taxation undermines compliance. The key to enhancing revenue lies in affordable and simple tax payments, not in increasing the tax burden,” Dr. Obeng emphasized.

Yaw Amoateng Afriyie, Deputy Chief Executive Officer of GIPC, highlighted the Centre’s proactive efforts to address operational impediments for foreign businesses in Ghana.

“We believe that initiatives such as digital customs and e-commerce platforms will benefit the business community. At GIPC, we are committed to reforming our processes to eliminate bureaucratic hurdles that hinder business operations and capital flow,” Mr. Afriyie stated.

“These reforms are crucial, especially in the current global context that limits capital inflow to our region. GIPC, as the leading agency for investment and business in Ghana, must ensure the continuous removal of obstacles that impede business operations and capital movement,” he added.

By Eugene Davis

Leave a Response


Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031

Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031

Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031

Notice: Function WP_Scripts::localize was called incorrectly. The $l10n parameter must be an array. To pass arbitrary data to scripts, use the wp_add_inline_script() function instead. Please see Debugging in WordPress for more information. (This message was added in version 5.7.0.) in /home/megasa5/investmenttimes/wp-includes/functions.php on line 6031