According to a 2024 Pre-Budget Survey conducted by KPMG and the United Nations Development Programme, businesses have identified the Electronic Transfer Levy (E-Levy) and COVID-19 Levy among the top five taxes negatively impacting their operations. The survey participants expressed concerns about the current tax environment and highlighted areas where modifications could alleviate the burdens faced by businesses.
The key taxes cited as problematic by respondents include the E-Levy (76%), COVID-19 Levy (68%), Import Tariffs (68%), Petroleum Levy (62%), and Growth and Sustainability Levy (51%). The businesses suggested that revising or abolishing some of these taxes, along with broadening the tax base, could potentially enhance tax revenues while positively impacting consumption and expenditure.
READ ALSO: "We Pay Too Much Indirect Taxes On Basic Goods" - Food and Beverages Association of Ghana
In addition to tax-related concerns, businesses also called for a comprehensive review of the government's flagship programs, such as the Free Senior High School (SHS), acknowledging its positive impact on secondary school enrollment and the creation of a skilled workforce. However, they proposed revising the policy to allow financially capable parents to contribute to the cost of SHS education while ensuring continued free access for needy students, considering the substantial financial burden on the government.
READ ALSO: Government Announces The Revision Of The Electronic Transfer Levy.
Regarding regulatory reforms, businesses emphasized the need for the government to streamline and digitize the process of business registration and licensing, making it more accessible and efficient. Furthermore, they urged the establishment of sustainable and affordable funding options for Micro, Small, and Medium Enterprises (MSMEs) to support their growth. Encouraging banks to fund MSMEs through risk-sharing initiatives and expanding existing programs were also suggested as means to facilitate access to financing.
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These survey findings highlight the concerns and suggestions of businesses to improve the tax environment, fiscal management, and regulatory processes in Ghana. It provides valuable insights for policymakers as they consider strategies to enhance business competitiveness, promote economic growth, and foster an enabling business environment.
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