The Ghana National Chamber of Commerce and Industries (GNCCI) has called for a clear indicator of how the government plans to stabilise Ghana’s economy in the upcoming presentation of the 2023 budget.
According to GNCCI, high inflation rates has positioned businesses in a difficult situation where prices of goods and services are consequently being increased.
As part of its contribution to the budget, the Chamber believes that, in order for businesses to stay competitive, they have to significantly cut back their profits which had implications for business growth, employment, tax revenue, and sustainability of businesses.
“The three per cent flat rate VAT review in July 2017 continues to negatively impact businesses as it does not allow for the transfer of the 17.5 per cent to the final consumer which has to be absorbed by businesses”.
“Further, businesses will have to charge three per cent output VAT, increasing the price of the product in question. This new VAT regime is making local businesses uncompetitive.”
Making its input into the 2023 budget for the government, the CEO of Ghana National Chamber of Commerce and Industries Mark Badu Aboagye said, “there must be a review of the three percent flat rate VAT system”.
Story by: Kelvin Danso
