The Food and Beverage Association of Ghana is calling on the government to announce major tax cuts for businesses in its 2024 budget.
At a press conference on Monday, October 23, the executive chairman of the association, John Awuni, intimated that introducing major tax cuts would enhance economic growth among the business community to achieve the desired economic sustainability.
“We strongly advocate for major tax cuts and the cancellation of some taxes in the 2024 fiscal year. This will spur the gains the economy has started making to sustainable levels. The business sector is currently riddled with too many taxes, levies, duties and indeed an overtaxed economy, thereby stifling growth. The government stands to rake in more revenue for development if taxes are reduced and some are cancelled. Currently, prices of goods and services are very high consequently reducing the demand for these goods and services. Considering the level of low wages and salaries in the country, the government can trigger higher demand for goods and services in the private sector if taxes are reviewed downwards.”
The association disclosed that its members are currently recording low sales, which it attributes to high taxes and levies imposed on their goods, and is therefore urging the government to cut down on taxes to increase demand for the goods.
“Increased demand for goods will obviously lead to higher sales volume, higher production levels in industry and consequently more revenue for the government. The basic economic principle of the higher the price, the lower the demand cannot be ignored in the case of Ghana.”
“The Food and Beverages Association is therefore of the firm belief that the gains the economy is beginning to record could be sustained for long-term growth and development if the private sector is relieved of some of the burdensome taxes either in the form of corporate tax, consumption taxes, or income tax,” Mr. Awuni added.