Abraham Koomson, Secretary General of the Ghana Federation of Labour, highlights that excessive taxation is crippling many businesses in Ghana. He emphasizes the need for the government to broaden the tax base by including the informal sector rather than over-taxing formal industries. Koomson suggests that this approach would help create jobs and make Ghana a more appealing investment destination.
Abraham Koomson, the Secretary General of the Ghana Federation of Labour (GFL), has expressed concern over the excessive taxation impacting businesses in Ghana. He noted that over 16 different taxes are being levied on companies, which stifles growth and leads many to collapse under the financial strain.
During his appearance on the BizTech program hosted by Ernestina Serwaa Asante, Koomson warned that if businesses fail, the government ultimately loses out on tax revenue. He advocated for a shift in strategy, suggesting that the government should focus on broadening the tax base by including the informal sector rather than placing additional burdens on established businesses that already pay taxes.
Koomson emphasized the need for a balanced taxation approach, stating, “If you [government] impose too much taxes on these industries, they will collapse and you will end up not getting any taxes at all.” He urged the government to foster growth in industries to generate higher tax revenues through the expansion of job creation and increased contributions from both employees and companies.
He further remarked, “They should expand the tax net so that everybody, whether you are in the informal economy or formal, can at least contribute.” Koomson stressed that taxing only a few investors who contribute to job creation could drive them away and harm the economy.
According to him, implementing production-based taxation can effectively address unemployment by promoting job creation. He believes that increasing production rates will not only attract more investors but also establish Ghana as the leading investment destination in West Africa.
Abraham Koomson’s assertions highlight the detrimental effects of excessive taxation on Ghanaian businesses. He proposes expanding the tax net to include the informal economy, advocating for a balanced approach to taxation that promotes growth instead of stifling it. By fostering an environment where industries can thrive, Koomson believes Ghana can enhance its attractiveness for investment and generate more tax revenue in the long run.
Original Source: www.ghanaweb.com
