New taxes: Be ready to pay more – GUTA tells consumers
The Ghana Union of Traders Association (GUTA) has asked consumers to belt up for an increase in the prices of goods and services.
This was said following the implementation of the three taxes on Monday, 1st May, 2023.
The trading community strongly stood against the three taxes. The three taxes are as follows; the Excise Amendment Act, 2023; Income Tax Amendment Act, 2023; and the Growth and Sustainability Levy Act, 2023.
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The President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng in an interview with Citi News said that his members are left with no other alternative 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.”
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He, Dr. Joseph Obeng further elaborated that his outfit will not delay in its efforts to get the government to review the new taxes.
The Excise Duty Amendment Act has also seen an expansion to cover some goods and commodities that were initially not considered. This in effect will lead to increase prices of processed foods like fruit juice, mineral water, spirits, wines, cigar, and other items.
The Income Tax Amendment Act is also to charge a minimum of 5% on firms declaring losses for five years.
Individuals who have an income beyond GH¢500 will pay some taxes, and the more an individual earns, the more taxes he or she will pay to the state.
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In terms of betting, a tax of 10% on earnings is to be paid to the State. Lottery and gaming firms will equally pay a tax of 20% of their gross revenue. People who receive for get gains from investment assets or liabilities and other non-gift-related earnings will also have to pay a tax of 25% of the value to the state.
The Growth and Sustainability Levy Act demands of banks, non-bank financial institutions, telecom companies, and firms working in the oil sector to pay a tax of 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 as well pay a tax of 2.5% of their profit before tax to the Ghana Revenue Authority (GRA).
