Rising cost of living: Many taxes imposed on businesses among causes – GUTA

• Posted on May 10, 2022May 10, 2022
• by Nana Kwesi Coomson
• Comment

The Vice President of the Ghana Union of Traders Association (GUTA), Charles Gyan, says one of the major drivers of the rising cost of products in the country is the high tax burden on businesses.

According to him, many businesses, in order to stay afloat, are forced to transfer taxes onto the cost of their products.

He said while the situation makes products and services more expensive for many to afford, there is very little the businesses could do about the situation.

Speaking on the Point of View on Citi TV, he argued that the Ghana Revenue Authority (GRA) can help address the issue of rising cost of products and services by expanding the tax net in order to have the tax burden reduced on the few companies who he said are being burdened all the time with new taxes.

“Government should look at the way it tries to raise money by taking taxes. Few people have been targeted. GRA as an institution must back up. I think they are being very lazy. They are not helping matters because if you look at the number of people in the informal sector who are not contributing anything, it is a pity,” he said.

He noted that increasing prices to make up for new taxes imposed on businesses is not sustainable and, as such, the businesses may have to lay off workers if it persists in order to continue operating.

“If the few businesses are always being burdened [with taxes] it will get to a point where we are going to lose businesses and unemployment will go up. Masons, carpenters and all of such persons don’t pay anything [they must be roped in],” he said.

Many Ghanaians continue to lament the rising cost of living in the country.

With recent transport fares going up and indications of utility prices also rising soon and no increase in wages and salaries, the future appears to be bleak.

GUTA argued that among the major drivers of the rising cost of products and services and the high taxes imposed on their businesses, the depreciation of the cedi, high cost of freight, among others.

-Citi