Dr. Daniel Seddoh, a financial consultant has opined that the business climate in Ghana is not favorable and conducive for businesses to thrive in the private sector.
According to him, government can do more to help businesses thrive by reviewing taxes.
“Especially in difficult times like this, the best thing to do is to drop taxes because let’s remember you are working in the interest of the people. Now you want to get people into employment, they are able to put bread on the table, kids go to school, there’s roof over people’s head.”
Dr. Seddoh
For this reason, Dr. Seddoh appealed to the government to support businesses by relieving them of the heavy tax burdens. By this, he meant not entirely eliminating taxes but reducing them.
Illustrating using the ‘GIGO – Garbage – In, Garbage – Out’ principle, Dr. Seddoh explained to the government the cyclical process that businesses undergo, explaining that reducing the tax burden of employers will ultimately help trim unemployment, moreover, the number of tax evaders.
“So the employers must be encouraged to do a lot more. So don’t tie their hands. Support them. Help them to grow and when they grow, they employ more people and the people get disposable income. When they consume, you’ll get your consumption tax. So don’t take the tax upfront. It’ll reduce their disposable income and then they can’t consume – they live miserably.”
Dr.Seddoh
Dr. Seddoh also advised businesses to comply by doing the needful – making the needed sacrifices they needed to help the Ghanaian economic situation.
“For me, I think it’s a very simple process. Let’s follow the way things are supposed to be done. Don’t let us burn the rules and make life difficult for ourselves. We’re in serious moments indeed and we need to make the sacrifices we need to make. We are already making the sacrifices – taxes are relatively high.”
Dr. Seddoh
Meanwhile, data from the Ghana Revenue Authority (GRA) recently revealed that people are really doing well with fulfilling their tax obligations as the year 2022 ended on a good note for the country collecting more revenues than it has in the past years.
GRA Exceeds Its Target
The records revealed that GRA exceeded its target for last year by GH¢3.6 billion, the highest in recent times.
The data indicated that the authority was tasked to raise a sum of GH¢71.94 billion by the end of the year but ended up collecting GH¢75.54 billion.
The Board, Management and staff of the GRA attributed this increase to the patriotism of their cherished customers to the nation by honoring their tax obligations and contributing their quota to the socio-economic development of their dear motherland, Ghana.
As courtesy demands, the board together with its management and staff therefore expressed their appreciation to their ‘cherished taxpayers and customers’ who showed great patriotism to the nation by their support.
“With your support, the Authority has been able to meet its 2022 revenue target. A total tax revenue of GH¢75.54 billion was realized representing a nominal growth of 31.5 per cent over the tax revenue collected in the 2021 fiscal year. We say Ayekoo for your all contributions.”
GRA
The Authority is positive 2023 promises to be even better with the country raising more revenues, with faith that individual businesses excel.
“We strongly believe that 2023 will record greater successes for your individual businesses and you will continue to honor your tax obligations faithfully.
“Let’s always remember to comply with the Tax Laws of Ghana; File your tax returns on time; Pay your taxes by due dates; Always remember to keep proper records of your business.”
GRA
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