Effective May 1, 2023, prices of some products in the market will go up, according to President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng.
This follows the implementation of three new tax measures by the government, namely the Excise Duty, the Income Tax Amendment Acts, and the Growth and Sustainability Act, which were passed by Parliament despite opposition from the Minority and the business community.
Dr Obeng emphasized that since businesses and consumers are interdependent, any challenges faced by businesses will ultimately impact the consumers
Consequently, GUTA intends to pass on the extra costs incurred from the taxes to consumers. He explained that this would likely worsen the current inflation rate, causing more hardship for consumers.
“The business that we do, we do not do in isolation, we do with the consuming public so whatever affects the business community, the rippling effect goes to the consumer. As a matter of fact, it’s a cycle, whatever target is being enjoyed by one will be given to the end user and this is what is going to happen.
“So I can foresee that it’s going to compound the inflation that we are even experiencing, and the plight of the consuming public,” he explained in an interview on Joy Midday News on Thursday, April 27, 2023.
The GUTA President expressed disappointment in the government for failing to engage with them before implementing the taxes, despite their calls to suspend their implementation.
GUTA had hoped that government would consider possible revisions to the taxes to ease the burden on businesses and allow them to grow.
Nonetheless, GUTA intends to work with its stakeholders in the business community to get its petition for tax revision heard by the government.
“All that we sought was for government to engage with this so that if there could be any possible revision that we can give some respite for the businesses to grow, it would have been very helpful to businesses,” Mr Obeng said.
Companies have until the end of the month to adjust their systems to accommodate the new taxes, according to guidelines released by the Ghana Revenue Authority.
The Excise Duty and the Income Tax Amendment Acts comes into effect on May 1, 2023.