Clear policy needed to fill tax holes, no new taxes required – Chamber of Commerce and Industry CEO

The CEO of the Ghana National Chamber of Commerce and Industry, Mark Badu-Aboagye, has emphasised the need for clear policy direction on generating revenue to address potential shortfalls from the promised tax cuts.

Speaking in an interview, he cautioned against introducing new taxes and advocated for improved compliance and business support to drive revenue growth.

“In giving out all these promises of scrapping taxes, I haven’t heard a clear policy direction on how they are going to generate revenue.

“If taxes are removed without a strategy, we risk creating revenue holes that will push the government to resort to borrowing,” he warned.

Revenue Generation Without New Taxes

Mr Badu-Aboagye argued that the solution lies in better implementation of existing taxes rather than introducing new ones.

“For me, the taxes that are already there, if implemented well, and if businesses are supported to grow, compliance will increase, and we’ll generate a lot of revenue,” he noted.

He criticized the excessive tax burden on businesses, which he said stifles growth and reduces production capacity.

Sharing a real-world example, he described a business that had reduced production from 27,000 tons per month to just 300 tons due to high import duties and other taxes.

“GRA went to this company and asked why their tax revenue had gone down. The company told them, ‘This is what you have done to us.’ Now, they’ve laid off workers, and the revenue that should have come from 27,000 tons of production is gone,” he explained.

Supporting the Private Sector

Mr. Badu-Aboagye stressed the importance of supporting the private sector to ensure a steady revenue stream.

“No government will survive without supporting the private sector. If you need money, support the private sector; they will expand, and the taxes will come,” he said.

He urged the incoming government to focus on compliance and effective tax implementation rather than rates or the number of taxes.

“It’s not about the rate or the number of taxes; it’s about compliance and effectiveness,” he concluded.