Ghana Chamber of Commerce CEO raises concern over soaring tax burden on businesses

Ghanaian

Mark Badu-Aboagye, the Chief Executive of the Ghana Chamber of Commerce and Industry, has voiced serious concerns regarding the increasing weight of both direct and indirect taxes on businesses in the nation.

In an interview on JoyNews, Mr. Badu-Aboagye expressed doubt about the sustainability of business profitability amidst rising costs and taxes. He argued that taxes have evolved into an

Read full articleimpediment to business growth.

"I think that our taxes have become more of a punishment to businesses than a support. This is because we cannot pay, but they’re expecting you to pay. They are beating us, but they are telling us to keep quiet," he indicated.

The CEO stressed the importance of not only introducing new taxes but also focusing on their efficiency and impact on businesses. He highlighted the detrimental effect of the continuous introduction of new taxes, asserting that these measures are hindering rather than fostering business growth.

"Businesses are suffering. Businesses cannot pay this tax. Businesses are just not making enough revenue to be able to pay this tax," he said.

Pointing to economic indicators, he referenced the GDP as a crucial measure of the state of businesses in Ghana. Mr. Badu-Aboagye drew attention to the worrying trend in the growth of GDP, revealing that most sectors are not performing well.

"As of the third quarter of 2023, the growth of GDP was 2%. And when you look at the details, you will realize that most of the sectors are not doing well. Consistently from the beginning of the year to now. The industry sector has recorded negative growth. It's only in the last quarter that the manufacturing sector recorded a 2% growth. So it shows clearly that businesses are not doing well," he explained.

Mr. Badu-Aboagye added: "If they are doing well, they produce a lot and by multiplying it by the market value, you will see that your GDP will go higher. So it's not far-fetched, if the government wants to know the state of businesses in Ghana, just check the GDP.”