June 24, 2024
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Increment in VAT is inappropriate at this time – Ghana Chamber of Commerce CEO

The Chief Executive Officer of the Ghana Chamber of Commerce, Mark Badu-Aboagye, says now is not the time for government to be increasing Value Added Tax (VAT) rates.

He stated that raising tax rates should have been the last thing the Akufo-Addo-led administration ought to have done given the difficult economic conditions that businesses are experiencing.

Speaking on JoyNews’ PM Express Business Edition, he said, “At this time that businesses are going through difficult situations, the last thing that any manager of an economy would do, is to increase the VAT or the rate of a tax.”

According to the CEO, the structure of the proposed VAT scheme is not in the best interest of businesses.

He explained that the tax increment was counterproductive to the development of the private sector.

Mr. Badu-Aboagye further stated that the measures outlined in the 2023 Budget even though aimed at stabilizing the economy may inadvertently lead to a high unemployment rate.

The CEO explained that due to government’s decision to freeze employment in the civil and public sectors, citizens will heavily depend on the struggling private sector as a source of employment.

“The only hope for those who are looking for jobs is within the private sector. If you are burdening the private sector with taxes and they cannot expand, they are not making profits, what we are saying is that in 2023 the unemployment rate is going to go up”.

Source//myjoyonline.com

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