Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mr. Mark Badu-Aboagye has expressed dissatisfaction with the government’s approach to stabilizing the economy.
In an exclusive interview on e.tv Ghana’s Fact Sheet with host Samuel Eshun, Mr. Badu-Aboagye highlighted the negative impact of fiscal and monetary policy revenues on businesses, emphasizing the burden of excessive taxes imposed on the private sector.
Badu-Aboagye criticized the government’s focus on aggressive revenue mobilization through taxes, stating, “Our system is such that when they say they are mobilizing revenue, we are looking at taxes. So a lot of taxes and the majority of businesses are suffering. Imposing them with these numerous taxes makes it difficult for them to strive.” He stressed that while businesses are not against the payment of taxes, it is the detrimental and counterproductive nature of current tax policies that are hindering economic growth.
He indicated that the chamber during the COVID-19 period conducted research to identify factors that affected the profitability of businesses in Ghana. The findings revealed that most small and medium-sized enterprises (SMEs) in the country have growth-oriented aspirations.
However, he stressed that their growth potential is stifled by burdensome taxes, high-interest rates, and other financial constraints. Badu-Aboagye explained, “When the senilities come in, the taxes, interest rate, and all that, then all of them are making losses.”
According to the GNCCI boss, the issue lies not only in increasing tax rates or introducing new taxes but also in ensuring compliance and recovery. He called for a more balanced and supportive tax regime that promotes business growth and contributes positively to the economy.
The CEO of GNCCI’s statements shed light on the concerns of the business community in Ghana regarding the government’s economic stabilization approach. As the private sector continues to face challenges, it remains to be seen how policymakers will respond to these concerns and work towards creating a more conducive environment for businesses to thrive and contribute to the country’s overall economic growth.
Meanwhile, the Executive Board of the IMF approved a $3 billion Extended Credit Facility for Ghana, which will end in 2027. This was a result of assurances from the country’s Creditors Committee under the G20 Common Framework last week, which includes China.