https://www.myjoyonline.com/high-taxes-compelling-multinationals-to-relocate-produce-and-import-into-ghana-tax-partner-pwc-ghana/-------https://www.myjoyonline.com/high-taxes-compelling-multinationals-to-relocate-produce-and-import-into-ghana-tax-partner-pwc-ghana/
Tax Partner at PwC Ghana, Abeku Gyan-Quansah

Tax Partner at PwC Ghana, Abeku Gyan-Quansah has revealed that the current high tax levels in the country has resulted in some multinational companies relocating to friendlier business environment outside Ghana.

“What we have picked up based on our work is that some of these firms have changed their business models by moving core operations outside Ghana to deal with the challenge [high taxes]”, he told host of PM EXPRESS BUSINESS EDITION, George Wiafe on February 1, 2024.

Providing more details, Mr. Gyan-Quansah said the plan is to relocate outside the country to produce at a cheaper cost and export the finished goods to Ghana for sale.

This, he lamented is depriving most Ghanaians the opportunity to be employed.

“Some of these firms have moved their operations outside and are just exporting to the country”, he stressed.

He challenged claims that the recent introduction of new taxes are as a result of proposals from the International Monetary Fund (IMF) under Ghana’s programmme.

“This is rather government’s own programme that it submitted to the IMF on how it intends to turn around the economy”.

He argued that a careful examination of the IMF-Ghana programme shows that government made a number of revenue proposals to increase income.

“When you go through Article IV, the consultation report put together by the IMF, one can count about 27 tax measures to help improve Ghana’s revenue situation”

This, he maintained does not suggest that the IMF compelled government to burden its citizens and businesses with tax.

Challenges with Ghana’s tax system

Giving some recommendations, Mr. Gyan-Quansah made a strong case for the tax laws to be reviewed immediately.

“I don’t think that we have done some good work when it comes to the VAT framework in Ghana”, he pointed out.

He described as unfair certain laws that still compel businesses to pay taxes even when they are making losses known as “positive tax”

“A chunk of monies that should come to the state is currently sitting in dispute with tax authorities and that is not good for the country’, he alluded.  

He called for speedy resolution of tax disputes through the Tax Dispute Board.

Concerns by businesses

Speaking on the same programme, the Chief Executive Ghana National Chamber of Commerce and Industry, Mark Badu-Aboayge raised concerns about the lack of consultations when introducing taxes. 

He noted that some of the issues could have been well ironed out or dealt with if there was the necessary engagements with the business community before these taxes were introduced.

Mr. Badu-Aboagye cited the recent challenges with the introduction of the Tax Amendments Act as an example.

“We are committed to paying taxes, but first help businesses to improve their status or situation so we can meet our obligations”, he said, adding that businesses are not making enough money to meet their obligations to the state.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.