The Chairman of the Food and Beverage Association of Ghana (FABAG), John Awuni, has sounded the alarm on the detrimental impact of high taxation on businesses, citing it as a primary driver of Ghana’s escalating unemployment crisis.
In a candid assessment of the country’s economic landscape, Awuni expressed deep concern over the burdensome tax regime imposed on businesses, which he believes is stifling growth and exacerbating unemployment rates.
“The high levels of unemployment figures in the country is an indication of the regressive taxes levied on the business community,” He remarked.
Highlighting the symbiotic relationship between a thriving private sector and job creation, he emphasized the pivotal role that businesses play in driving employment opportunities.
However, he lamented that excessive taxation has forced many businesses to operate at suboptimal levels, resulting in a significant shortfall in job creation.
Mr. Awuni shared a personal anecdote, revealing that his own company, which has the potential to employ 100 individuals, currently employs only 12 due to the burdensome tax burden. This stark reality, he argued, is emblematic of the broader challenges facing businesses across the country.
Calling for urgent reforms to Ghana’s taxation regime, he urged policymakers to prioritize a business-friendly approach that fosters growth and job creation.
He emphasized the need for taxes to serve as a catalyst for economic stimulation rather than a hindrance to progress.
“To assess the tax regime or give a verdict on the current tax regime, we have to look at the general purpose of taxation. Taxes should be such that they should be able to stimulate growth in the private sector.”