This newly followed E-levy in Ghana will get worse plight of companies - GNCCI

 This newly followed E-levy in Ghana will get worse plight of companies - GNCCI

The Ghana National Chamber of Commerce and Industry (GNCCI) has referred to as at the authorities to rethink the choice to impose 1.seventy five consistent with cent levy on cell cash and different digital transactions withinside the country.

The chamber maintained that the proposed levy might in addition get worse the plight of companies specially small and medium enterprises (SMEs) which have been particularly growth-pushed and at risk of financial and marketplace cycles.

It stated to growth revenue, the authorities need to as a substitute recognition on locating modern methods of widening the tax net, making sure tax compliance, in addition to cope with the growing stages of tax exemptions which did now no longer commensurate enterprise growth.

Widen tax base

The President of the GNCCI, Mr Clement Osei-Amoako, who said this on the GNCCI Seminar at the 2020 National Budget in Accra remaining Monday, discovered that to decorate tax compliance, the authorities need to widen the tax base thru a discount withinside the tax price to a stage lower priced to the common taxpayer to keep away from seeing tax charge as a disincentive.

He stated that would be completed thru the oblique tax system, instance income tax and fee delivered tax (VAT).

"Despite latest declines, hobby quotes in Ghana stay some of the maximum withinside the world. Although the power scenario has progressed extensively over the previous few years, power value to companies stays too high.

"Struggling companies pay a whole lot better for power on the way to subsidise families. In Europe and China, families pay better power value to subsidise industry," he stated.

Chamber’s evaluation

He said that the chamber’s evaluation of the authorities’s rules and programmes, in addition to interplay with the enterprise network caused the submission of 7 thematic troubles of enterprise difficulty to the Ministry of Finance for attention withinside the 2022 finances.

"These regions protected macroeconomy, higher enterprise environment, interconnected threat control and resilient commercial fee chains, integrating wholesale and retail in Ghana’s financial improvement programme, improving entrepreneurship training and abilties improvement, port operations and benchmark values and optimising Ghana’s alternate agreements to decorate commercial growth," he stated.

The seminar

Mr Osei-Amoako stated the seminar become to offer an better platform for coverage discussions on authorities rules and programmes in serving the hobby of the non-public sector.

According to him , the seminar had one goal and it become to permit specialists and enterprise operators to comprehend and interrogate authorities’s rules and programmes contained withinside the 2022 finances, in addition to to discover inherent threat and enterprise opportunities.

"We may have shows via way of means of our panellists on topical troubles withinside the finances observed via way of means of an open discussion board to permit the enterprise network to percentage their perspectives and are looking for readability wherein necessary.

"Our deliberations can be beneficial in growing a conversation as coverage suggestions to the 2022 finances," he stated.

Don’t derail cashless drive

The Partner and Head of Tax at KPMG, Mr Kofi Frimpong-Kore, expressed the wish that the authorities might evaluation the 1.seventy five consistent with cent e-levy imposed earlier than the implementation will begin in February 2021.

"In our interplay with the Minister of Finance, we had the impact that very soon, the levy can be reviewed following the inputs and reactions made via way of means of the stakeholders and the general public in general".

He stated authorities need to be careful now no longer to derail efforts made to sell cashless transactions with the imposition of the brand new levy.

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