We won’t back down on calls for the government to review new taxes – GUTA

The Ghana Union of Traders Association (GUTA) has indicated that it will continue to dialogue with the government to review three taxes in the mid-year budget.

According to  GUTA, businesses are struggling to survive due to the high taxes and utilities they are paying.

In an interview, GUTA President Dr Joseph Obeng said the union would discuss cushioning businesses in these austere times with the government.

“Now that the IMF deal has gone through, we will still pursue government and dialogue so that at least in the mid-year budget, we can make some revisions so businesses can have some respite.

“The current IMF deal creates the environment for engagements. Therefore. GUTA will take advantage of this opportunity and lobby for some reviews to be done before the mid-year budget is read.

“We believe that any proposal that we give to the IMF because they do not seek the destruction of businesses, we can still go to the table and discuss things. We will look at how some of these taxes can be lowered to cushion businesses in the country,” Dr Obeng explained.

On June 1, 2023, water and electricity tariffs increased by 18% per unit.

Some businesses complained that this could worsen their plight as they already struggled with high taxes and inflation.

However, the Public Utilities Regulatory Commission (PURC) justified its decision to adjust tariffs, saying the move was needed to sustain the operations of the various companies in the production and distribution chain of electricity.

GUTA contends that the IMF is against suppressing the growth of the private sector. Hence it will intensify engagements to have the taxes reviewed in the mid-year budget.

Background

The Ghana Revenue Authority began the implementation of the new and revised taxes announced in the 2023 Budget on May 1, 2023.

The implementation date was captured in a notice issued by the authority.

The new and revised taxes included three key tax measures – the Excise Amendment Act, 2023; Income Tax Amendment Act, 2023 and the Growth and Sustainability Levy Act, 2023.

The GRA notice indicated that businesses had been given enough time to configure their systems for implementing taxes since the law was passed.