Businesses in Ghana face a heavy tax burden, including 16 different taxes that are impacting operations negatively. Key grievances include the long-standing COVID Levy and the seemingly redundant Container Fumigation Tax. Many companies are relocating to countries with more favorable tax conditions, which poses a risk to Ghana’s economic stability.
In many global economies, taxes are crucial for sustaining public services; however, excessive taxation on businesses can jeopardize economic stability. Businesses in Ghana are increasingly voicing concerns over a series of burdensome taxes that impede their capacity to operate efficiently. This relentless tax pressure has led some investors to relocate to neighboring countries, including Nigeria, Cote d’Ivoire, and Togo, searching for a more favorable business climate.
One of the most contentious taxes affecting enterprises is the COVID Levy, which was implemented during the pandemic in 2020. Despite the initial intention, Ghanaians continue to shoulder this tax five years later, with many calling it unnecessary. Another tax criticized by business leaders is the Container Fumigation Tax, as similar checks are performed prior to shipping, rendering this charge redundant.
The Secretary General of the Ghana Federation of Labour, Abraham Koomson, discussed the substantial tax burden that businesses face in Ghana. Below is a detailed list of the 16 taxes levied on businesses in the country:
1. Import Taxes
2. Import VAT
3. ECOWAS Levy
4. Network Charge
5. Network Charge VAT
6. Network Charge COVID-19 Health
7. Ghana Shippers Authority SNF Fee
8. Import NHIL
9. Network Charge NHIL
10. GHS Disinfection Fee
11. MoTI – 1D1F Fee
12. Special Import Levy
13. Ghana Export – Import Bank Levy
14. Ghana Education Trust Fund Import
15. Network Charge GETFund Levy
16. Container Fumigation Fees at the Port
The exhaustive tax regime places a significant strain on local enterprises and could deter potential foreign investments. Despite ongoing complaints, there has been minimal governmental action to alleviate these financial pressures on businesses. It remains crucial for the government to reconsider these tax policies to foster a more encouraging environment for economic growth in Ghana.
The multitude of taxes imposed on businesses in Ghana highlights a severe economic challenge, with the COVID Levy and Container Fumigation Tax emerging as especially problematic. Businesses are struggling to cope with these increased costs, which has led to a migration of investments to neighboring countries. Addressing these taxation issues is essential for revitalizing the business environment and encouraging both local and foreign investments in Ghana.
Original Source: www.ghanaweb.com
