Business is picking up slowly – Kumasi traders lament as new taxes take effect

Some traders in the Ashanti Regional capital, Kumasi have raised serious concerns over the new taxes, saying trading activities are picking up slowly.

The Ghana Revenue Authority implemented the revised taxes announced in the 2023 Budget on 1st May.

The new and revised taxes include three key tax measures – the Excise Amendment Act, 2023; Income Tax Amendment Act, 2023 and the Growth and Sustainability Levy Act, 2023.

The Excise Duty Amendment Bill will impose 20 percent on sweetened beverages and other products.

The traders who spoke to Citi News insisted the introduction of the new taxes will further increase the cost of doing business.

Traders who sell beverages and bottled water have accused some wholesalers of intentionally creating artificial shortages of some products as a means of adjusting prices to reflect the new tax measures.

The traders say customers are opposed to new prices of products that have increased following the implementation of the taxes.

Adusei Poku who takes products from these wholesalers and supplies other retailers within the Kumasi metropolis lamented that the increased prices will affect his business.

“The increased prices of the products are worrying. We take the products and supply them to the retailers, and they complain about the price hikes. If it will be possible the manufacturers should print out and attach the prices when they are bringing in the products.”

The Ashanti Regional branch of the Ghana Union Traders Association says its members will have no option but to pass on the cost to consumers if the Government does not intervene.

“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.”

About The New Taxes

The Excise Duty Amendment Act has been expanded to cover some items and commodities that was previously not captured.

As a result, the prices of some processed fruit juice, cigar, mineral water, spirits and wines including sparkling wine, will shoot up.

The Income Tax Amendment Tax will be charging a minimum of 5% on firms that will be declaring loses for 5 years.

However, income earned beyond ¢500 will attract some taxes.

Those earning an extra ¢100 will attract a tax rate of 5%, while ¢100 only will attract a rate of 10%.

Based on the schedule, the more one earns the more one would be paying taxes to the state.

For persons in the game of betting, they will pay 10% of their earnings to the state, which will be deducted when monies are being paid them by the respective companies.

Firms that are into lottery and gaming will also pay 20% on their gross revenue.

Based on revised taxes, individuals who receive, gains from realization of investment assets or liabilities as well as other than gifts received in respect of business or employment may have to pay 25% of the value to the state.

Growth and Sustainability Levy: For banks, non-bank financial institutions, telecom companies and firms working in the oil sector will pay 5% of their profit before tax to the state.

Mining firms, oil and gas companies are however expected to pay 1.0% of their gross production, while all other firms will pay 2.5% of their profit before tax to the GRA.