President Nana Addo Dankwa Akufo-Addo has been told not to sign the three revenue bills – Excise Duty, Growth and Sustainability Levy and Income Amendment Bills that were approved by Parliament on Friday, March 31.
A member of the communications team of the National Democratic Congress (NDC) Dr Samuel Aryeh said the taxes are punitive and are going to affect businesses negatively.
To that end, he asked the president to suspend the taxes.
“They are punitive, they will erode all the gains we have made, businesses will collapse, and already there is hyperinflation. So I appeal to the President to suspend the taxes,” Dr Aryeh said on the Big Issue on TV3 Tuesday, April 4.
The Association of Ghana Industries (AGI) said that businesses may have no option than to cut down on expenditure and production levels to stay within budget.
The AGI registered its disappointment at the passage of the three revenue bills by Parliament.
It said the approval on Friday, March 31 came on the heels of an already harsh business climate.
The passage of these bills poses very dire consequences for Industry.
“We continue to experience a tax regime that does not motivate local production and formal business operations.
“We denounce the lack of stakeholder consultation on such fiscal policies, which have negative impact on businesses. AGI took steps to make input to the bills and it’s
obvious that our submissions did not receive the consideration we expected,” a statement issued by the AGI said.
“Contrary to Government’s ambitious revenue projection which largely hinges on the
performance of Industry, we foresee a contraction in manufacturing and other related
business activities.
“Businesses may have no option than to cut down on expenditure and production levels to stay within budget.
“With the foregoing, Government risks missing its revenue target if industry has to contend with these new taxes. While we reckon that Government needs revenue, fiscal prudence is crucial. We appreciate the urgent need of the IMF measures, but this should not be at the expense of growth in our industrial sector.
Indeed, it is in the mutual interest of industry and Government to sustain Agriculture and
Industrial sectors which hold the key to job creation.
“We call on Government to engage AGI on measures to incentivize our local industries to
forestall the negative consequences of these policies. To this end, we welcome the
opportunity to dialogue with Government on how to save jobs and the strategic options to
explore in cushioning our local industries. AGI wishes to assure its members that the Association will continue to engage Government on such fiscal policies to bring positive reviews in subsequent national budget statements.”
