Mark Badu-Aboagye, the CEO of the Ghana Chamber of Commerce and Industry (GNCCI), has voiced strong concerns regarding the impact of current tax policies on businesses, attributing the situation to the government’s agreement with the International Monetary Fund (IMF).
In a recent interview with Joy News, Mr. Badu-Aboagye characterized the existing tax environment as “suffocating,” especially given the introduction of new taxes tied to the IMF program.
He criticized the complicated and varied tax structure, particularly highlighting the intricacies of the VAT system in Ghana, which he deemed excessively complex.
While acknowledging that the Ghana Revenue Authority (GRA) has adopted a more consultative approach, he emphasized that the overall tax framework remains opaque and difficult for businesses to navigate.
According to him, the high rates of taxation encourage evasion and avoidance as companies seek methods to reduce their tax liabilities.
“When taxes are both high and complex, businesses are more likely to evade or avoid them,” he stated, advocating for a reduction in tax rates to ease the burden on enterprises.
He stressed the necessity for a thorough overhaul of the tax system, arguing that the government’s quest for revenue should not compromise the viability of businesses.
