The Director of Policy and Research Bureau at the Chamber of Agribusiness Ghana, Kojo Ahiakpa, has expressed concern that the recent approval of three new taxes by President Nana Addo Dankwa Akufo-Addo may lead to a rise in food inflation.
The taxes, which were passed by Parliament in March 2023, include the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, the Ghana Revenue Authority Bill 2022, and the Income Tax Amendment Bill 2022.
Mr.Ahiakpa has warned that the new taxes could increase the cost of doing business in the agribusiness sector, which may lead to producers passing on the costs to consumers. He explained that the Growth and Sustainability Levy would raise the cost of doing business and would impact the cost of goods and services across the country, which would in turn impact the cost of living.
He also pointed out that the elasticity of demand for these goods could lead to a possible increase in inflation, particularly in food inflation. He suggested that the government engage with stakeholders to find common ground and consider offering tax holidays to alleviate the burden on businesses.
He is however calling on the government to work with stakeholders to address the concerns and potential impact of these taxes, particularly in the agribusiness sector.
BACKGROUND
President Nana Addo Dankwa Akufo-Addo has signed off on three new taxes that were passed by Ghana’s Parliament in March 2023. The new taxes are the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, the Ghana Revenue Authority Bill 2022, and the Income Tax Amendment Bill 2022.
According to Information Minister Hon.Kojo Oppong Nkrumah, the bills have been returned to the Clerk of Parliament for final processing before being transmitted to the Ghana Revenue Authority for implementation.
The new financial bills are expected to generate approximately GH₵4 billion annually and will help the government to facilitate Board Approval for the $3 billion International Monetary Fund (IMF) Programme staff-level agreement.
BY:AGRIWATCH REPORTER
