Rédaction Africa Links 24 with Emmanuel Tornyi
Published on 2024-02-12 14:30:06
The private sector in Ghana is facing challenges, including dwindling working capital and increasing disillusionment among investors. Many businesses are exploring investment options in neighboring countries such as Togo and Cote d’Ivoire due to the unfavorable business environment in Ghana. The Association has urged its members to consider the tax and policy proposals of presidential aspirants in the upcoming elections.
The Association expressed concerns about the current business environment, stating that government policies have become detrimental to the growth and profitability of the private sector. They emphasized the need for business-friendly government policies that would reignite the engine of growth in the private sector and address the concerns of over-taxation and other challenges faced by businesses in Ghana.
President Nana Addo Dankwa Akufo-Addo recently assented to three new tax bills, including the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill, 2022, and the Income Tax Amendment Bill 2022. These new taxes have sparked nationwide reactions, with critics arguing that they will price lower-income individuals and small business owners out of the digital economy. The bills are expected to generate about GH¢4 billion annually, and the government has defended them as necessary to shore up revenue domestically and boost Ghana’s fiscal position following the economic shocks of COVID-19 and the Russia-Ukraine war.
The Association’s concerns reflect a broader sentiment among businesses in Ghana, who feel increasingly unwelcomed by the government due to over-taxation and other policies that are perceived as detrimental to business growth and profitability. The sentiment has led many businesses to explore investment opportunities in neighboring countries, posing a significant threat to Ghana’s economy and business environment.
In response to these concerns, the Association has called on the government and political parties to clearly articulate how they plan to address the challenges faced by the private sector and revitalize the business environment. They emphasized the need for specific tax policies for imports, manufacturing, and the service sector, as well as a commitment to making the private sector genuinely profitable if given the mandate. The Association also highlighted the dispiriting attacks, mudslinging, and harassment faced by businesses, stating that they do not feel the backing and support of the state.
As the elections approach, the private sector’s concerns are likely to influence the voting decisions of its members and employees. The outcome of the elections and the policies put in place by the incoming administration will have a significant impact on the business environment in Ghana and the country’s economic prospects. It is essential for the government and political parties to engage with the private sector and address their concerns to ensure the continued growth and prosperity of businesses in Ghana.
In conclusion, the private sector in Ghana is facing significant challenges, including over-taxation and detrimental government policies. The Association has called for a re-evaluation of these policies and clear commitments from political parties to address the concerns of the private sector. As the government implements new tax bills, it is essential to consider the potential impact on businesses and the overall economy. The outcome of the upcoming elections and the policies put in place by the new administration will be crucial in shaping the future of the business environment in Ghana.
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