New tax bills will affect businesses and lead to unemployment — Tax expert warns

He bemoaned the implications of the taxes approval and said it will affect the rate of tax compliance by businesses because it will be a discouraging act to honour.

He said the operational cost of businesses and the unemployment situation in the country will be adversely affected.

Dr. Abdallah mentioned that the tax bills particularly the Excise Duty and Excise Tax Stamp (Amendment) Bill, 2022 and the Growth and Sustainability Levy Bill, 2022, could result in businesses passing the increased duty on to consumers through price hikes, which could result in inflation.

According to him, businesses were already dealing with challenges such as the high cost of water and electricity, and that with the new tax bills coming into force, it would further increase their operational cost of doing business.

In an interview with Daily Graphic, he stated that if businesses failed to pass the taxes on to consumers, they might decide to reduce the cost of production, such as cutting back on labour, which could further worsen unemployment levels, thereby worsening the unemployment situation in the country.

Parliament on Friday, March 31, 2023, passed all three revenue bills, the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill, 2022, the Ghana Revenue Authority Bill 2022, and the Income Tax Amendment Bill 2022.

Ghanaians have been reacting to the three new taxes introduced by the government.

The Trades Union Congress adding its voice to the new taxes said it is disappointing and allayed the fear of more workers being laid off.

The Deputy Secretary-General, Joshua Ansah said the new taxes will impoverish ordinary Ghanaians and lead to massive job cuts.

Meanwhile, the Food and Beverages Association of Ghana (FABAG) has also expressed disappointment with the three new revenue tax bills.

The spokesperson for the Food and Beverages Association, John Awuni said it is disappointing that Ghana’s lawmakers disregarded the cry and agitations of the people and went ahead to have the bills approved.

He indicated that the Association petitioned Parliament but the lawmakers disregarded it and went ahead to pass the bill.