The Ghana Union of Traders’ Associations (GUTA) has stated that despite some stability of the cedi against major currencies, including the dollar, this has not significantly impacted the cost of doing business in the country.
Mr Joseph Obeng, President of GUTA, emphasised that the cost of doing business in Ghana remains high.
He urged the finance minister to address this issue in the upcoming mid-year budget review.
Mr Obeng specifically cited high utility costs, loan interest rates, and import duties as key reasons businesses in Ghana are struggling.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he reiterated the call for the government to tackle these challenges.
“We’ve seen stability since the cedi appreciated against the dollar, which is important. However, this stability hasn’t had any impact on reducing the cost of doing business. Utility costs are still high, and interest rates remain elevated,” he explained. “Our expectation for the mid-year budget is to see measures outlined to help address these challenges.”
He also advocated for a flat rate for Value Added Tax (VAT) in Ghana, expressing concerns about the current VAT system. He believes a flat rate scheme would simplify tax calculations and foster business growth.
Furthermore, he lamented what he described as unfair competition and price increases under the current VAT system, arguing that it has created an uneven market where many retailers avoid paying taxes.
“Our expectation is that the government will restructure the system because the current arrangement makes goods expensive,” he stated. “We are urging the government to simplify and make tax collection more affordable, which would also encourage business owners to pay their taxes. We are proposing the introduction of a flat rate scheme for traders. Duties are also still high, and we hope they will be reduced to promote compliance.”
By: Rainbowradioonline.com/Ghana
