3 revenue bills will not collapse businesses – Information Minister refutes claims by AGI

The Information Minister, Kojo Oppong-Nkrumah, has allayed the fears of members of the Association of Ghanaian Industries (AGI) that the widening of the tax net will collapse businesses.

In the view of the minister, the focus should rather be on the benefits the country will derive from the tax collection and how it will prepare

Read full articlethe country to revive the economy.

The Ofoase Ayirebi Member of Parliament (MP) also explained that the government is not increasing the tax rate but ensuring that persons who were not captured in the bracket of taxpayers, are identified and made to pay.

This, he stressed, is part of measures to widening the tax net.

“I also have business and I will also pay the taxes. But the question we need to ask ourselves is, are we going to benefit from these new measures, if the answer is yes then we will feel the pinch and the pain, and if we are able to bear the pains, then there will be a brighter tomorrow,” he told the morning show host of Kumasi-based Oyerepa TV, and monitored by GhanaWeb Business.

Kojo Oppong-Nkrumah’s comments come on the back of agitations that have met the passage of the revenue bill.

According to the umbrella body for Ghanaian industries, AGI, local industries are already under severe pressure from several challenges.

“Electricity tariffs shot up significantly on two occasions, totalling a whopping 56.5%, within a period of less than six months. How could our beverage sector absorb water tariff increment of over 300% in a single tariff review and now excise duties slapped on locally produced beverages," the AGI statement said.

But the Minister of Information has argued that the data available to government officials does not suggest that businesses will collapse.

“It’s not like businesses will automatically shut down because of the widening of the tax net. Some people have suggested that businesses will collapse but those who have done the mathematics and checked the viability of this move disagree with the suggestion that industries will collapse. Not too long ago, some people equally opined that businesses would could collapse due some measures taken by government. Example is when government decided to open schools in the midst of the COVID-19 pandemic.

"There were fears that our children were going to die, you remember the Accra girl’s situation where parents besieged the schools’ gate over a small outbreak but no one died. So, it’s not always the case that when a section of the populace say businesses will shut down it does,” he reassured.

He further added that, “We really appreciate the challenges of the AGI and all those who have expressed reservation over the tax measures. What’s important is that we abide by the law and do what is right now, but as we progress, should there be the need government to withdraw it because of its dire consequences, we will do so. People should just keep faith with the Akufo-Addo administration.”

MA/AE