Passage of three new taxes disincentive to businesses – FABAG

The Foods and Beverages Association of Ghana (FABAG) has stated that the passage of the three new taxes by Parliament is a disincentive to businesses in the country

According to him, producers have seen an increase in their production costs as a result of the newly introduced taxes by parliament to consumers.

This comes on the back of Parliament on March 31, 2023, through a Majority decision that has passed three new taxes which is to generate approximately GH¢4 billion per year to supplement domestic revenue.

These are Income Tax Amendment Bill, Excise Duty Amendment Bill, and Growth and Sustainability Amendment Bill.

Speaking on Morning Starr with Francis Abban, President of FABAG, Sam Aggrey indicated that the move by the government will compound the already hardship in the system.

“It's affecting industries because if you look at the value of the cedi against the dollar which has depreciated so much. Investors then lost almost about 50% of their income within the same period. Instead of us introducing bills that will make them recouped its loss, we are rather forcing them to go down the drain.

“The benchmark value that was increased, this increase they say were seeking to help local industries to grow. So, if you collect the money from the importer, the best thing you are to do is to reinvest that money into the industry for them to be able to produce at a lower cost,” Mr. Aggrey stated.

He continued: “But then you collect the money and you consume the money. Therefore, the industry stands at the very position that we were trying to help them to grow. Now it has become even worse. So, we don’t know if we have to close down or if we have to find another means in the country where we can invest our money.”