Consumers have been warned by the Ghana Union of Traders Association (GUTA) to brace themselves for a rise in the price of products and services in the near future.
After the introduction of the three new taxes on May 1, 2023, this is the result.
The commercial sector voiced passionate opposition to all three of the proposed tax increases, which included the Excise Amendment Act of 2023, the Income Tax Amendment Act of 2023, and the Growth and Sustainability Levy Act of 2023.
In an interview with Citi News, the President of the Ghana Union of Traders Association, Dr. Joseph Obeng, suggested that his members have no other alternative than to pass on the effect of the taxes to customers. Obeng’s comments were made in reference to the fact that his members have no other choice.
The overall cost of conducting business is going to go up as a result of this. This will ultimately affect the customer, which might not bode well for any of us in the long run.
It will not be absorbed by the corporate entity itself; rather, it will be passed on to the consumer when somebody is going to pay 5 percent on his gross and when somebody is paying 2.5 percent on his gross.
Dr. Joseph Obeng went on to say that his organization will not stop working toward the goal of having the government reconsider the recently implemented levies.
The Excise Duty Amendment Act has been expanded to cover some items and commodities that were not previously captured, which may result in increased prices for processed fruit juice, cigars, mineral water, spirits, wines, and other products.
The expansion of the Excise Duty Amendment Act to cover these items and commodities can be attributed to the fact that the Excise Duty Amendment Act has been expanded.
Companies that report losses for more than five years will be subject to a minimum tax rate of 5% under the Income Tax Amendment Act.
People who make more than 500 yen per month will be subject to some form of taxation, and the more money an individual makes, the more tax they will owe to the state.
When it comes to betting, the state will receive 10% of revenues, whereas lottery and gaming companies will be required to pay 20% of their overall revenue.
Individuals who have received gains from investment assets or liabilities, in addition to other earnings that are not related to gifts, may be required to pay the state a tax equal to 25% of the value of those gains.
In accordance with the Growth and Sustainability Levy Act, businesses operating in the oil industry, as well as banks, non-bank financial institutions, and telecom companies, are obligated to contribute five percent of their pretax profits to the state.
Corporations in the mining, oil, and gas industries will contribute 1.0% of their gross production, while corporations in all other industries will contribute 2.5% of their profit before taxes.
credit: citi news