High taxes killing our businesses – Food and Beverages Association

The Food and Beverage Association of Ghana says the high taxes on goods and services are killing their businesses in the country.

It has therefore called on the government to announce major tax cuts for businesses in its 2024 budget.

Executive Chairman of the association, John Awuni expressed his concerns about the excessive taxation imposed on Ghanaians, asserting that this approach is not the solution to the current economic conditions.

“We strongly advocate for major tax cuts and the cancellation of some taxes in the 2024 fiscal year. This will spur the gains the economy has started making to sustainable levels. The business sector is currently riddled with too many taxes, levies, and duties, indeed an overtaxed economy, thereby stifling growth. The government stands to rake in more revenue for development if taxes are reduced and some are canceled. Currently, prices of goods and services are very high consequently reducing the demand for these goods and services. Considering the level of low wages and salaries in the country, the government can trigger higher demand for goods and services in the private sector if taxes are reviewed downwards.”

He disclosed that its members are currently recording low sales, which is attributed to high taxes and levies imposed on their goods, and is therefore urging the government to cut down on taxes to increase demand for the goods.

“Increased demand for goods will lead to higher sales volume, higher production levels in industry, and consequently more revenue for the government. The basic economic principle of the higher the price, the lower the demand cannot be ignored in the case of Ghana.”

“The Food and Beverages Association is therefore of the firm belief that the gains the economy is beginning to record could be sustained for long-term growth and development if the private sector is relieved of some of the burdensome taxes either in the form of corporate tax, consumption taxes, or income tax,” Mr. Awuni added.

He noted that the current tax regime focuses on raising revenue from a limited number of individuals and relies on increasing taxes.

This approach, he asserted, impedes the development of the private sector and hampers businesses from achieving their full potential.