A Director of Policy and Research Bureau at the Chamber of Agribusiness Ghana, Kojo Ahiakpa, has opined that the three taxes assented to by the president may cause food inflation to rise.
President Nana Addo Dankwa Akufo-Addo has assented into law the three new taxes passed by Parliament in March 2023.
The taxes are the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill, 2022, the Ghana Revenue Authority Bill 2022 and the Income Tax Amendment Bill 2022.
He explains that the new taxes will further increase the cost of doing agribusiness in the country and producers may likely shift the cost to consumers.
“On the Growth and Sustainability Levy, the implications to us in the Agribusiness are that it is going to increase the cost of doing business hence any allowable deductions that are stated in clause 3 of the Bill will most definitely impact the cost of doing business across the board,” he said.
“And that goes to affect the cost of goods and services across the country and that is going to impact the cost of living,” he mentioned.
“And depending on the elasticity of demand of these goods, there is going to be a possible increase in inflation and for that matter food inflation to be specific,” he added.
He further added that “the way forward will be for stakeholder engagement for government to find a common ground with the other parties, and with respect to these taxes some tax holidays must be considered”.