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Monday, May 23, 2022

Government’s insistence on 1.75% E-levy rate does not augur well for businesses – GNCCI

Finance Minister, Ken Ofori-Atta

Slowly implement e-levy, GNCCI to government

Support businesses grow, Clement Amoako to government

Businesses were not consulted on e-levy, GNCCI

President of Ghana National Chamber of Commerce and Industry (GNCCI), Clement Osei Amoako, has said implementation of e-levy at 1.75% will cause more harm than good to businesses.

He explained that most businesses are recovering from the shocks of coronavirus and the cost of doing business now in Ghana is high.

Mr Amoako said it’s better to support businesses thrive than to burden them with the increasing cost of doing business that will stifle their output.

In a press statement, the GNCCI president said, “While being mindful that the revenue estimation took into account the 1.75% e-levy to meet the budget deficit, the Chamber calls on government to hasten slowly with the implementation. It is instructive to support businesses to grow and thrive (increased output, employment, and tax revenue) than to burden them with increasing cost of doing business that will stifle output, employment, and tax revenue.”

“Government’s insistence on maintaining the rate at 1.75% does not augur well for businesses, especially who are recovering from the shocks of the pandemic, amidst high cost of doing business in the country,” part of the statement read.

Mr Amoako however refuted claims made by Finance Minister, Ken Ofori-Atta that businesses were consulted on the controversial e-levy.

Meanwhile, government intends to use the money accrued from e-levy to create jobs and grow the private sector to employ more of the teeming unemployed youth in the country.

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