Business

Tax payment systems remain topmost challenge for businesses in Ghana – survey

Ghana’s payment systems and corruption at regulatory agencies remain the topmost challenge for both foreign and indigenous businesses across the country.

This is an outcome of a survey conducted by the UK-Ghana Chamber of Commerce in the last quarter of 2019.

According to the UK-Ghana Chamber of Commerce, businesses are ready to pay the right amount of taxes to the state if the right channels are created without any negative impact on their operations.

The report also cited corruption at some state regulatory agencies which include bribery and payment of non-approved fees before service rendered.

The Executive Director of the UK-Ghana Chamber of Commerce, Adjoba Kyiamah told JoyBusiness that they have begun engagement with the Ministry of Finance to find a solution to challenges facing businesses.

“We have begun an effort with the Ministry of Finance to correct some of the disruptions that are caused by the tax officials from the Ghana Revenue Authority which has been a disincentive for investment growth”.

Launching the report, Deputy Minister of Trade and Industry Ahomka Lindsay promised that many initiatives are undergoing review to ensure that challenges facing businesses are addressed. He also disclosed that the government is committed to moving from heavy dependent on revenue from customs duty this year.

“The taxation challenge is both expansion in terms of the tax net and ones you get the proper base of expansion then you can talk about a gradual taxation system which makes sense where perhaps the small and medium enterprises have a different tax rate system and another for the larger ones.”

He said, “Taxation is of great importance to us but the great opportunities in taxation are to increase our margins from tax and move away from our over-reliance on taxation based on customs. If we’re trying to increase the industrial base then our taxes shouldn’t be coming from customs.”

The Chamber is expecting a review in the strategy adopted by the Ghana Revenue Authority in chasing businesses that may be defaulting tax.

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