According to the Food and Beverages Association of Ghana, customers in Ghana pay outrageously high indirect taxes and levies on a variety of essential commodities.

The group claimed in a press release that various taxes levied by the government result in customers paying up to 100% of the price of some goods.

Numerous disturbing examples of price inflation brought on by taxes are given in the statement.

It stated that a tin of evaporated milk retails for $15.5 after taxes, a rise of 82% over its pretax price of $8.5.

Similar to how a bottle of beer goes for $5 before taxes but goes for $11 after taxes, a 120% increase.

Products like spaghetti (110%), tin tomatoes (86%), 50 kg bags of rice (100-120%), and chicken (130% rise for local poultry) have all experienced such exorbitant price increases.

Cooking oil (120% per box), used gas cookers (88%), tinned sardines (109%), and automobile batteries (100%) are among the other commodities with significant tax-related price inflation.

Because of the excessive taxes, the cost of necessities like a bag of rice can be more expensive than the total monthly salary of low-wage workers like waiters and drivers.

John Awuni, the Executive Chairman of the Association, issued a warning that the economy and business are being badly impacted by the excessive taxation.

He claims that lower sales volumes and production are the outcome of the decreased demand brought on by high prices.

This inhibits corporate expansion and lowers government income mobilization as a whole.

In the budget for the fiscal year 2024, Mr. Awuni pushed for significant tax reductions and the elimination of several taxes.

According to him, doing so would improve private sector performance and increase demand and sales.

He claims that the current tax structure inhibits growth and makes smuggling appealing.

Source: Ghana360news.com