Businesses threaten to pass on VAT, NHIS levy increase to consumers

Businesses have threatened to pass on any increment in the VAT and the National Health Insurance Levy (NHIL) during the Mid-Year Budget Review to consumers.

In an interview with Accra-based Citi FM, the National Welfare Chairman of the Ghana Union of Traders Association (GUTA), Benjamin Yeboah said an increase in taxes will affect the prices of goods and services in the market since most items have VAT and NHIL on them.

Mr Yeboah, said the government must not increase taxes since the economic state of the country does not call for a tax increase.

“As businesses, we always look for a conducive environment to do our business. So any tax that is problematic for us needs to be looked at. Imposing taxes is not the way to go when you want to raise revenue. The government needs to widen the tax net to bring in more businesses and persons that are not paying taxes,” he said.

Mr. Yeboah added that the importers are rather expecting the government to remove the 2% Special Import Levy at the ports.

“We want taxes like the 2% Special Import Levy to be reduced or removed. We’ve also heard that there might be an increase in the VAT at the ports. That will be problematic because it will end up being passed on to ordinary Ghanaians in the form of increased prices.”

He encouraged the government to seek alternative means of meeting its revenue mobilization target.

Meanwhile, the Acting Chairman of Abossey-Okai Spare Parts Dealers, Clement Boateng has tasked government to use the budget to announce measures that will stabilize the cedi.

“What I want to hear from the Finance Minister are measures being put in place to check the downward spiral of the Cedi. Because that is a big worry for every person out there. Today the Dollar is being exchanged for 4 cedis 78 pesewas, and about a month ago it was about GHC 4.60 pesewas for a Dollar.”

These comments are coming on the back of media reports that the government will announce an increment in VAT and NHIL when the Finance Minister presents the Mid-Year Budget Review.

The Mid-Year Budget Review will presented by Ken Ofori-Atta on Thursday (July 19, 2018).

Businesses threaten to pass on VAT, NHIS levy increase to consumers

Businesses have threatened to pass on any increment in the VAT and the National Health Insurance Levy (NHIL) during the Mid-Year Budget Review to consumers.

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