Executive Director of the Ghana Real Estate Developers Association (GREDA), Sammy Amegayibor has urged the government to reduce fuel prices in order to cushion the business community in the wake of the current economic challenges.
Mr. Amegayibor reemphasized the importance of taxes to the government but stressed that it should be looked at from a broad perspective.
The real estate industry expert pointed out that the government stands to lose more if businesses collapse or experience contraction rather than growth.
Mr Amegayibor said the high cost of fuel to power generators would not only affect the real estate sector, but the economy as a whole.
‘I believe that when you have a problem you should look at the checks and balances. In this case, the government is losing out because businesses are folding up. If the government’s business is to collect taxes to develop the nation and the businesses themselves are folding up, then it is losing out on its source of income,’ he said.
‘In this current situation, it will be more prudent for the government to remove some of the taxes on fuel. Reducing the price of fuel is crucial for the business community because most of us now tend to buy fuel for power generators to support productivity. So I think if that can be quantified and the benefits can be measured, that will be the most prudent thing to do.’
Akua Nyame-Mensah, the Managing Director of Lamudi Ghana, echoed the thoughts of Mr Amegayibor and stressed the need for the country to focus on sustainable energy.
She said investment in solar energy and sustainable building would save the country hundreds of megawatts of energy.
‘The short-term solution would be to introduce some form of tax relief to the business community in order to ensure its survival. Currently, start-ups will be facing a huge challenge just to survive with the current power crisis, while other business units may have to fold up as a result,’ she said.
‘But I believe sustainable building and energy are key to ensuring not only the survival of the business community, but crucial to cutting costs to government.’
The country has been grappling with economic challenges in addition to the energy crisis.
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