Businesses relocating to neighbouring countries due to taxes – FABAG

February 29, 2024
Businesses relocating to neighbouring countries due to taxes – FABAG
Mr. John Awuni

John Awuni, Chairman of the Food and Beverage Association of Ghana (FABAG), has voiced deep concerns regarding the detrimental impact of heavy taxes imposed by the government, which has led to the collapse of businesses within the private sector.

In an interview with Bernard Avle on Citi TV's Point of View following the State of the Nation address, Mr Awuni revealed that many companies are considering relocating their operations to neighbouring countries as a strategic measure to avoid failure.

Expressing his dissatisfaction with the tax burden weighing on the private sector, Mr Awuni pointed out the various taxes contributing to the sector's challenges. These include the levy, the Carbon Emissions Levy, and the Growth and Sustainability tax, among others.

“The private sector is really under serious tremendous taxes. We still have the COVID-19 levy, Carbon Emissions Levy, Growth and Sustainability tax, I can go on and on. Our interest rates and inflation rates remain very high, and our currency remains highly unstable, which makes the players lose their capital by the day. There's a high level of unemployment that shows that the private sector is not doing well.

“As a result of the high level of taxation and the poor performance of the private sector, people have devised various means of making their businesses survive. We're in an era where most players in the private sector have started repositioning their businesses in neighbouring countries. In Cote D'Ivoire and Togo, most importers right now are routing their imports through Togo and Cote D'Ivoire, and that has shown clearly in our imports data.”

Mr Awuni's remarks highlight the urgent need for the government to address the heavy tax burden faced by businesses in Ghana's private sector to ensure their sustainability and contribute to economic growth and development.

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