The Food and Beverages Association of Ghana (FABAG) is proposing a reversal of the three new taxes that came into effect on May 1, 2023.
The implementation of the Income Tax Amendment, Excise Duty, Excise Tax Stamp Amendment, and Growth and Sustainability taxes has begun, much to the disappointment of the business community.
Traders fear the new tariffs will burden and collapse businesses in the country.
Executive Director of FABAG, John Awuni said the association expects the Finance Minister to withdraw these taxes during the mid-year budget presentation.
“We are expecting that we can still engage with the government if it makes itself available. We have made so many appeals to parliament and the executive, and it appears no one is minding us, but we remain hopeful. In the mid-year budget, they should be able to reverse those three new taxes,” he said on Citi News
He added that “the Growth and Sustainability levy for example is extortion. It is absolutely unacceptable, and it is going to affect the ordinary Ghanaian. So we will speak to the government as partners in development to ensure that they withdraw these taxes because they are odd.”
Parliament before going on break on March 31, passed the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill, 2022, the Ghana Revenue Authority Bill 2022, and the Income Tax Amendment Bill 2022.
The Excise Duty (Amendment) Bill, which will impose a 20 percent tax on cigarettes and e-smoking devices, as well as sweetened beverages, spirits, and wines, is projected to rake in about GH¢400 million annually, while the Income Tax (Amendment) Bill will generate about GH¢1.2 billion.
The Growth and Sustainability (Amendment) Bill, which will replace the National Fiscal Stabilisation Levy that currently imposes a levy on companies operating in selected sectors, is also projected to raise about GH¢2.2 billion. It requires banks, non-bank financial institutions, telecom companies, and firms working in the oil sector to pay 5% of their profit before tax to the state.
The Income Tax Amendment Act requires a minimum charge of 5% on firms declaring losses for five years. Individuals earning income beyond ¢500 will attract some taxes, and the more one earns, the more taxes one will pay to the state.