Players within the agri-business sector are envisaging the impact of the Growth and Sustainability levy on access to finance capital.
According to them, the assertion of the bill into law will further widen the limitation associated with financial inclusion.
A Director of Research and Policy at the Chamber of Agribusiness, Kojo Ahiakpah said this development will slow the growth of agribusiness.
” Most agribusiness accesses credit from financial institutions so what it means is that this is going to increase the cost of borrowing money, and the cost of accessing credit from financial institutions.
Although the National Fiscal Stabilization Levy Act Reconstruction Levy Act has been repealed now this levy is replacing it.
They are already saddled with a financial sector recovery level of 5 per cent.
We are likely going to pass the cost of service to customers, ” He said.
The government has now passed the Growth and Sustainability Levy Bill 2022 to raise revenue for the growth and fiscal sustainability of the economy.
According to the memorandum accompanying the Bill, the Coronavirus Disease (COVID-19) pandemic led to a significant reduction in revenues and increased expenditure enormously.
This has been compounded by the Russian-Ukraine war resulting in unprecedented global crises, depreciation in currencies and impacted living conditions and inflation levels.
The application of this levy is limited to profits before tax or production for 2023, 2024, and 2025 years of assessment.
