16 tax burdens that are striking businesses down in Ghana

In Ghana, the tax system is a critical aspect of the economy. While taxes are essential for funding public services and infrastructure, excessive taxation can hinder business growth. Recently, many businesses in Ghana have voiced their concerns about the heavy tax burden they face. This situation has led to calls for reforms to make the tax environment more favorable.

One of the most pressing issues is the introduction of multiple taxes, which many business owners believe are detrimental to their operations. The current tax landscape features a staggering 16 different taxes that businesses must navigate. This complexity not only increases costs but also discourages both local and foreign investors. Many have chosen to relocate their operations to neighboring countries like Nigeria, Cote d’Ivoire, and Togo, where the tax environment is perceived as more manageable.

A significant point of contention is the COVID Levy, imposed during the pandemic in 2020. Despite the easing of pandemic-related restrictions, this levy remains in place five years later. Business owners argue that it has outlived its purpose and should be abolished.

Another contentious tax is the Container Fumigation Tax. Critics argue that this tax is redundant since all necessary checks are conducted at the loading point. Therefore, paying this tax at the port seems unnecessary and burdensome.

Abraham Koomson, the Secretary General of the Ghana Federation of Labour, recently highlighted the 16 taxes that businesses are grappling with. These include:

1. Import taxes
2. Import VAT
3. ECOWAS Levy
4. Network Charge, Network Charge VAT, and Network Charge COVID-19 Health
5. Ghana Shippers Authority SNF Fee
6. Import NHIL and Network Charge NHIL
7. GHS Disinfection Fee
8. MoTI – 1D1F Fee
9. Special Import Levy
10. Ghana Export-Import Bank Levy
11. Ghana Education Trust Fund Import
12. Network Charge GETFund Levy
13. Inspection Fee
14. African Union Import Levy
15. COVID-19 Health Recovery Levy
16. Container Fumigation Fees at the port

The cumulative impact of these taxes is significant. Many businesses feel stifled by the financial strain they impose. As a result, there is a growing demand for the government to reassess its tax policies. Simplifying the tax code and eliminating unnecessary taxes could encourage investment and foster a healthier business climate in Ghana.