Ghana Union of Traders Association (GUTA) has asked consumers to brace themselves for an increase in the prices of goods and services.
This follows the implementation of the three taxes on Monday, May 1, 2023.
The trading community vehemently opposed the three taxes which include the Excise Amendment Act, 2023; Income Tax Amendment Act, 2023; and the Growth and Sustainability Levy Act, 2023.
In an interview with the media, the President of the Ghana Union of Traders Association, Dr. Joseph Obeng indicated that his members have no other option than to pass on the effect of the taxes to consumers.
“This is going to trickle down on the cost of doing business. This will trickle down to consumers and that may not augur well for all of us. When somebody is going to pay 5 percent on his gross and when somebody is paying 2.5 percent on his gross, it will not be absorbed by the business entity itself, it will be passed on to the consumer.”
Dr. Joseph Obeng further stated that his outfit will not relent in its efforts to get the government to review the new taxes.
The Excise Duty Amendment Act has been expanded to cover some items and commodities that were previously not captured, which may result in increased prices for processed fruit juice, cigar, mineral water, spirits, wines, and other items.
The Income Tax Amendment Act will charge a minimum of 5% on firms declaring losses for five years.
Individuals earning income beyond ¢500 will attract some taxes, and the more one earns, the more taxes one will pay to the state.
For betting, 10% of earnings will be paid to the state, while lottery and gaming firms will pay 20% of their gross revenue. Individuals who receive gains from investment assets or liabilities and other non-gift-related earnings may have to pay 25% of the value to the state.
The Growth and Sustainability Levy Act requires banks, non-bank financial institutions, telecom companies, and firms working in the oil sector to pay 5% of their profit before tax to the state.
Mining firms, oil and gas companies will pay 1.0% of their gross production, and all other firms will pay 2.5% of their profit before tax to the GRA.