GUTA’s Opposition to Government’s New Taxes
The government’s attempt to impose new taxes has met with strong opposition from the Ghana Union of Traders Association (GUTA). GUTA thinks that businesses and the economy will suffer as a result of these increased taxes. The union is adamantly against the adoption of an emission levy and the Value Added Tax (VAT) on electricity rates.
According to GUTA, these additional taxes will put a strain on companies and raise the already high cost of conducting business in Ghana. These taxes will be especially painful for small and medium-sized businesses (SMEs), as they have thin profit margins and little capital to absorb further expenses. GUTA is concerned that the implementation of these taxes will result in a loss of jobs, a decrease in investment, and a slowdown in economic expansion.
Before enacting any new taxes policy, the group is urging the government to reevaluate its choice and have meaningful talks with important parties, particularly the business community. In order to make sure that businesses’ interests and concerns are taken into consideration and that any new taxes are just and reasonable, GUTA feels that these discussions are essential.
The significance of a steady and predictable tax environment for enterprises is also emphasised by GUTA. Without adequate planning and engagement, the abrupt implementation of additional taxes has the potential to cause uncertainty and interfere with corporate operations. The group contends that rather than burdening companies with more taxes, the government ought to concentrate on fostering an atmosphere that allows them to prosper.
GUTA is actively interacting with legislators and pushing for measures that will support the expansion and development of Ghana’s trading industry in addition to its resistance to the additional levies. According to the union, addressing the issues faced by traders and fostering a favourable business environment require cooperation between the government and the business community.
All things considered, the worries of several firms in Ghana are reflected in GUTA’s robust resistance to the government’s additional levies. The group feels that the economy would suffer as a result of these taxes, and it is up to the government to rethink its choice and have serious discussions with important parties before enacting any new tax laws.
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Read also: Ghana Union of Traders’ Associations (GUTA)