88.6% of business leaders believe there's little to show for numerous taxes collected – KPMG survey

A 2023 pre-budget survey conducted by accounting and auditing firm KPMG Ghana has shown that 88.6 percent of respondents believe government has little to show for the numerous taxes collected from citizens over the years.

According to the survey which sampled over 100 leading businesses in the country and obtained responses from 70 of them across ten sectors, it raised questions about debt sustainability even as Ghana engages the IMF for financial assistance.

Particularly on the controversial Electronic Transfer Levy, the KMPG survey noted, “during these difficult times, more than half of business leaders believe electronic levy (E-Levy) is a major source of concern.”

“Furthermore, petroleum and import duties and levies were singled out as taxes that needed to be reconsidered in order to reduce the rising cost of doing business,” it noted.

“Industry leaders believe that government's IMF program will help restore macroeconomic stability while some respondents suggested that the program should enhance debt sustainability while also promoting inclusive and long-term growth,” the survey added.

The KPMG survey also noted that over 64.3 percent of industry leaders agree that government should prioritize domestic and external debt restructuring to avoid the risk of credit default with debtholders.

“Other survey participants believe government should restructure its foreign debt due to its foreign exchange exposure adding that, “over the last few years, the cedi has clearly underperformed against major foreign currencies.”

The report further said respondents believe government must make difficult decisions toward restoring the Ghanaian economy, especially in these current times.

“As a result, we propose government creates an enabling environment for businesses to thrive and specifically evaluate its tax policy regime, particularly the electronic levy, petroleum levies, and custom duties,” the KPMG pre-budget survey said.

“Furthermore, government should improve communication channels and be transparent about its expenditures while the IMF program is expected to ensure fiscal discipline while also reducing excessive borrowings.”

MA/FNOQ

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