E-Levy Will Kill Businesses- Chamber of Commerce
The President of the Ghana National Chamber of Commerce and Industry, Mr Clement Osei-Amoako, says the 1.75% e-levy will kill businesses and must be reconsidered.
Speaking at the GNCCI Seminar on the 2020 National Budget in Accra, he said to enhance tax compliance, the government should widen the tax base through a reduction in the tax rate to a level affordable to the average taxpayer to avoid seeing tax payment as a disincentive.
He said that could be done through the indirect tax system, for example, sales tax and value-added tax (VAT)
despite recent declines, interest rates in Ghana remain among the highest in the world. Although the energy situation has improved considerably over the last few years, the energy cost to businesses remains too high.
“Struggling businesses pay much higher for energy to subsidise households. In Europe and China, households pay higher energy costs to subsidise industry,” he said
Mr Osei-Amoako says these seminars are necessary to understand government politics and their impact on business and to advise where necessary for the total benefit of the nation.
The Partner and Head of Tax at KPMG, Mr Kofi Frimpong-Kore, expressed the hope that the government would review the 1.75 per cent e-levy imposed before the implementation will start in February 2021.
“In our interaction with the Minister of Finance, we had the impression that very soon, the levy will be reviewed following the inputs and reactions made by the stakeholders and the public in general”.
He said government should be cautious not to derail efforts made to promote cashless transactions with the imposition of the new levy.