According to the Food and Beverage Association of Ghana, Ghanaian consumers pay expensive indirect taxes and levies on numerous fundamental commodities.
According to a news release issued by the group, customers pay up to 100% of the cost of some commodities owing to different government levies.
The statement contains several examples of alarming price increases caused by taxes.
It indicated that a tin of evaporated milk costs ¢8.5 before taxes but ¢15.5 after taxes, representing an 82% increase.
Similarly, a bottle of beer costs ¢5 before taxes but ¢11 after taxes, a 120% increase.
Similar outrageous price hikes are seen for products like 50kg sacks of rice (100–120%), canned tomatoes (86%), pasta (110%), and chicken (a 130% increase for local fowl).
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Along with canned sardines (109%), car batteries (100%), outdated gas cookers (88%) and cooking oil (120% per box), there have been notable price rises associated with taxes on goods.
The cost of basic necessities like a bag of rice may surpass the whole monthly salary of low-income workers like drivers and waiters due to the high taxes.
According to the Association’s Executive Chairman John Awuni, excessive taxes hurt the economy and enterprises.
He argues that high prices reduce demand, which lowers output and sales volumes.
In the budget for the fiscal year 2024, Mr. Awuni suggested eliminating a number of levies and significantly reducing taxes.
He argued that doing so would boost demand and sales while also improving performance in the private sector.
He claims that the current tax system promotes smuggling and stifles growth.
This stunts business expansion and reduces government revenue mobilisation overall.
