The Food and Beverage Association of Ghana has urged the government to announce significant tax reductions for businesses in its 2024 budget.
During a recent press conference, John Awuni, the executive chairman of the association, stated that introducing major tax cuts would boost economic growth among the business community and achieve the desired economic sustainability.
Awuni emphasized that the 2024 fiscal year should see significant tax cuts and the cancellation of some taxes to sustain the gains the economy has made.
The business sector currently suffers from excessive taxes, levies, and duties, resulting in an overtaxed economy and stifling growth. If taxes are reduced and some are canceled, the government stands to generate more revenue for development.
Currently, the prices of goods and services are very high, reducing demand for these goods and services. The government can trigger higher demand for goods and services in the private sector by reviewing taxes downward, considering the low wages and salaries prevalent in the country.
The association disclosed that its members are currently recording low sales, which it attributes to high taxes and levies imposed on their goods, and is therefore urging the government to cut down on taxes to increase demand for the goods.
“Increased demand for goods will obviously lead to higher sales volume, higher production levels in industry and consequently more revenue for the government. The basic economic principle of the higher the price, the lower the demand cannot be ignored in the case of Ghana.”
“The Food and Beverages Association is therefore of the firm belief that the gains the economy is beginning to record could be sustained for long-term growth and development if the private sector is relieved of some of the burdensome taxes either in the form of corporate tax, consumption taxes, or income tax,” Mr. Awuni added.