Ghana-German Economic Association calls for tax reforms to boost investment
THE Acting Executive Secretary of the Ghana-German Economic Association (GGEA), Hilary Saki Kodji, has called for tax reforms to improve the business environment in the country.
Speaking during the “GGEA Meet the Government Series” in Accra last Wednesday, Mr Hilary emphasised the challenges faced by businesses and investors, including multiple levies and taxes that can be punitive in the current tax regime.
To address these challenges, the Acting Executive Secretary of GGEA suggested joint auditing by tax authorities, which would “help reduce the burden on businesses and improve efficiency. This would involve scheduling joint audits with all relevant tax authorities to minimise disruptions and ensure that businesses can focus on their core activities”.
He also called for harmonisation of tax handles and levies to simplify accounting and payment processes. Mr Kodji cited the current VAT regime as an example, stating that it could be confusing and burdensome for businesses to navigate multiple VAT requirements.
Benefits
Mr Kodji believed that tax reforms would boost investor confidence and encourage more investment in the country.
“By streamlining tax processes and reducing the administrative burden on businesses, Ghana can become a more attractive destination for investors,” he said.
He emphasised that joint audits and harmonised tax handles would allow businesses to focus on their core activities, rather than spending excessive time on tax compliance and audits.
GRA initiatives
A Senior Revenue Officer at the Ghana Revenue Authority (GRA), Humphrey Odoom, said the GRA has launched initiatives aimed at improving the business environment in Ghana, particularly in the area of customs clearance.
According to a Senior Revenue Officer, the GRA was working to make business operations cheaper and more efficient for the Ghanaian community through two key programmes, the Authorised Economic Operators (AEO) programme and the pre-arrival system.
He explained that the AEO-certified businesses enjoyed faster clearance times at the port, with most clearing their goods within 30 minutes.
“Businesses undergo pre-qualification checks to ensure compliance and transparency. The AEO certification simplifies customs procedures, reducing costs and increasing efficiency for businesses.
“Importers can submit documents before their goods arrive, allowing for assessments to be done and duties paid in advance. When goods arrive, importers can proceed with examinations and clearance without delay,” he explained.
He emphasised that by streamlining customs procedures, the GRA hoped to reduce congestion at ports and make trade more efficient, improve revenue collection, partly due to increased imports and the appreciation of the cedi.
Mr Odoom mentioned that a number of companies have been certified under the AEO programme, including Nestle Ghana Limited, Guinness Ghana Breweries PLC, and Printex Limited.
These companies, he said, would benefit from faster clearance times and reduced costs, enhancing their competitiveness in the market.