Employers are warning that the government’s tax reform could undermine local production, investment and jobs if businesses are not given enough time to adjust, calling for implementation arrangements to be reviewed and the reform’s impact assessed by the first quarter of 2027.
The Ghana Employers Association (GEA) wants the government to assess how the reform affects production volumes, prices, jobs, investment and local sourcing, with corrective measures introduced where evidence points to unintended consequences for compliant businesses.
GEA President Nana Dr Emmanuel Adu-Sarkodee Afriyie said the association had engaged the government on implementation and requested a deferral until the end of the first quarter of 2027 to allow affected enterprises to adjust their systems, inventories, contracts, pricing and production arrangements.
“Our concern is to ensure that the transition does not inadvertently undermine domestic production, investment and employment,” he said.
The proposed review would also examine the reform’s effects on tax revenue and illicit trade, helping establish whether the new regime is meeting its objectives without placing compliant local manufacturers at a disadvantage.
Employers Seek Fair Transition
The GEA has urged the Ministry of Finance and the Ghana Revenue Authority (GRA) to review the implementation timeline and transitional arrangements with affected industries.
It also wants clear administrative guidance, compliance support and reasonable treatment of genuine transitional challenges, particularly for businesses that entered contracts, held inventories or made production decisions under the previous regime.
The association’s concern is that changes in tax arrangements could leave some firms facing disruption or uncertainty after committing resources under the former rules.
Smuggling Raises Competition Concerns
The employers have also called for stronger enforcement against smuggling, counterfeiting and non-compliant products, warning that businesses meeting their tax obligations should not be undercut by operators outside the formal system.
“A tax system certainly cannot be fair if compliant enterprises carry the burden while illicit operators gain a market advantage,” Dr Afriyie said.
The GEA said effective enforcement, alongside constructive engagement with industry, would be essential to the success of the reform.
It wants the proposed post-implementation review completed within the first quarter of 2027, with evidence of any adverse effects on compliant local manufacturers or employment used to guide prompt corrective action.
