Too much tax; a catalyst for collapsing companies and job losses -Tax analyst

Tax Analyst and the Executive Director for Revenue Mobilisation Africa, Geoffrey Ocansey has said that every country develop through tax mobilization but sometimes too much tax becomes a burden on people and business leading to their collapse and joblosses.

Speaking on Plan B FM’s morning show NKOSUONSEM hosted by Obidehye Kofi Sekyi in reaction , Mr. Ocansey explained that, although he is not against tax, too many taxes on businesses in the country will compel business owners to lay off workers to cut production costs the government did do the needful, and continue to burden businesses with taxes,” i remember this government said they will move this country from taxation to production, what has happened?”

Mr Ocansey emphasized the significance of exploring more effective methods for revenue generation that do not jeopardize the capacity of households to fulfill their essential needs and the ability of the private sector to stay competitive.

“Nobody can tell us that the only way out is to impose more taxes and taxes, as we have done. The more we impose taxes, the real effect in scaling up or our tax revenue to GDP ratio is not seen,” he said.

He stressed that the government’s inability to fight corruption and recoup the stolen and misappropriation of funds from government appointees is also another aspect that has crippled the country’s finances.

He said, government aims to boost revenue for national development, improper tax measures may negatively impact both businesses and individuals, possibly leading to the collapse of many enterprises as multinational companies are exiting the country.

Ghana’s economy has been hit by the exit of several multinational companies (MNCs) in recent years, including Societe Generale, Glovo, Nivea, Jumia Foods, Lipton Tea, Dark and Lovely, Bet 365, Game, and Bic.

This trend raises concerns about the country’s economic stability and highlights the need for diversification.

The exit of MNCs can have significant impacts on the economy, including job losses, decreased economic activity, reduced competition and innovation, decreased availability of products and services, increased prices for consumers, and struggles for local businesses to fill the gap.

Moreover, the exit of MNCs can also lead to a decrease in foreign investment, which can further exacerbate the economic challenges facing the country.