Ghanaian businesses have been warned to brace themselves for further increases in prices of goods and services following the signing into law of three new tax bills by President Akufo-Addo. The Ghana National Chamber of Commerce and Industry (GNCCI) alerted the public to the forthcoming hikes, citing that the new taxes will compel businesses to transfer the costs to customers.
The chamber noted that businesses were not making profits and could not absorb these taxes, so they have no choice but to pass them on to customers. The Chief Executive of GNCCI, Mark Badu-Aboagye, added that these taxes could cause businesses to collapse, and the International Monetary Fund (IMF) would not be pleased with that.
The GNCCI urged the government to implement taxes that would generate revenue for the government and ensure that businesses can operate efficiently and profitably. However, the increase in the prices of goods and services will hurt the gains made with a significant decline in inflation for March, which was pegged at 4.5%. The Ghana Statistical Service warns that the rise in inflation will also keep lending rates higher.
The GNCCI’s warning is significant for businesses and consumers alike. It comes at a time when the country is experiencing economic challenges and is hoping to rebound from the impact of the COVID-19 pandemic. The government will need to balance its need for revenue with the concerns of businesses and consumers. As the cost of living continues to rise, it is essential to monitor how these new taxes will affect the economy and the people of Ghana.
Source: Citinewsroom.com