High taxes killing small business - Food and Beverage Association

Secretary of the Food and Beverage Association of Ghana, Samuel Ato Aggrey, says high taxes are kicking out small businesses in the country.

Wondering whether Parliament was aware of the tax hikes, he said the current tax regime was cruel.

According to him if the lawmakers have a hand in the current high tax regime, then they have been insensitive to the Ghanaian business community.

Samuel Ato Aggrey was speaking on Adom FM’s “Burning Issues”, Wednesday with host Afia Pokua.

He observed that business are currently struggling to survive due to the country’s economic challenges, adding the situation has been made worse by the increased taxes.

“The rate at which they [government] are increasing the tariffs is alarming. And nobody will call them to order which is a headache for us” Mr. Aggrey said.

“If the government does not have solutions to the problems of the nation and those in charge cannot control and stabilize the economy, they must be fired”, he said.

He said instead of piling up taxes, competent people who are capable of solving the country’s economic problems should be hired.

On the falling cedi, Mr Aggrey expressed disappointment at steps being taken to stabilize it.

In February, 2014, the Bank of Ghana announced measures to help halt the free fall in the cedi's value and directed that all transactions in the country should be conducted in Ghana cedis in compliance with Bank of Ghana Notice dated October 10, 2012.

The Central Bank also required all exporters to collect and repatriate in full, the proceeds of their exports to their local banks within 60 days of shipment.

The Food and Beverage Association Secretary notes that directive by the central bank was just a panic reaction that did not do the nation any good in the light of the current situation.

He hinted that the association and its members are planning to peg 6 cedis to 1 dollar to save their businesses if the government fails to stabilize the cedi against the major trading currencies.

Mr. Aggrey charged the leadership of the central bank and the government to adopt prudent strategies to save the economy from total collapse.