New VAT making local businesses uncompetitive - GNCCI

The Ghana National Chamber of Commerce and Industries (GNCCI) has averred that the newly introduced Value Added Tax (VAT) is making local businesses uncompetitive. According to the chamber, the prices of goods are skyrocketing because of the 3 per cent VAT charged on a product. Due to this, the chamber has called for the abolishment of the new tax policy in the 2023 budget. “The 3% flat rate VAT review in July 2017 continues to negatively impact businesses as it does not allow for the transfer of the 17.5% to the final consumer which has to be absorbed by businesses,” a report filed by myjoyonline.com said. “Further, businesses will have to charge 3% output VAT, increasing the price of the product in question. This new VAT regime is making local businesses uncompetitive,” it added. The chamber has therefore called for the reversal of the current VAT regime to that of the 2016 tax rate. Watch the latest edition of BizTech below: ESA/BOG