Business groups have a point but …

On Monday, members of 19 business groups closed their shops to the public in protest against what they referred to as high import duties and a hike in taxes.

The move, according to the groups, was in compliance with a directive by a joint consultative assembly meeting of the groups last Thursday as part of measures to compel the government to review the current tax regime after the expiry of a two-week ultimatum.

The business groups, including the Ghana Union of Traders Association (GUTA), the Ghana Chamber of Commerce and Industry, the Ghana Automobile Dealers Association and the Food and Beverages Association, had, at a press conference last Wednesday, resolved to close down their shops for three days, effective yesterday, in protest against the high taxes.

The groups, including many other players within the economy, such as labour unions, have expressed their misgivings about the impact of the high taxes, among other increases in service delivery, on businesses and also the income of workers in the formal sector of the economy.

Last year, the government signed an agreement with the International Monetary Fund (IMF), and as part of the conditionalities, the government was expected to raise additional revenue from within to be able to meet its financial obligations.

The irony has been the manner in which the government is raising funds by taxing a minute group of eligible taxpayers in the country and leaving the larger majority, especially players in the informal sector, outside the net.

At the President’s media encounter last year, he pointed out that only 30 per cent of the number of people and businesses expected to pay tax are doing so.

It was, therefore, expected that in his quest to raise money through taxes, the Finance Minister would devise pragmatic strategies to widen the tax net to reduce the burden on what we describe as easy targets within the economy.

Widening the tax net is about roping in the large informal sector, majority of whose membership does not pay any taxes to the state, yet enjoys the same amenities that the government provides using the taxes of the minority in society.

This, we believe, is unfair and must be reversed at all cost.

It is a fact that what is to be collected from taxes should not be more than what is spent in collecting it. However, it must be noted that unless we set aside some funds to improve the tax collection system to be able to capture the large number of eligible taxpayers, this burden on the few will not abate and the agitation will not stop.

Our fear is that when these strikes continue, there might be a serious threat to national security and productivity will suffer.

The Daily Graphic believes that we do not deserve to turn the wheels of progress backwards by our actions and inaction because it will derail our efforts in nation-building.

Against this background, we urge the striking groups to be patient and resort to dialogue with the government to have their concerns resolved.

We also expect the government, led by the Finance Minister, to open up to the groups and work on measures to ensure that the huge tax burden is reduced, while steps are taken to rope more people into the tax net.