The Chamber for Young Entrepreneurs has bemoaned the complexity of Ghana’s tax system.
Its Chief Executive Officer, Sherif Gali, disclosed on Joy Business Social that most Small and Medium Enterprises (SMEs) are discouraged by frustrations faced with Ghana’s tax administration.
This, he, believes has inspired many of such businesses find ways to avoid and in some cases evade tax.
“Our tax system is too complicated for SMEs to understand. Other countries have made it easy for you to understand the system and file your taxes from your comfort.”
He explained that various calls have been made to consider a one-time payment to make it easy for both micro and medium sized businesses to adhere to the filing of taxes and stay compliant, but has yielded no results.
There was a time we petitioned for a one-time payment just to make it easy and simple, but our call hasn’t been heeded to”.
He further lamented how a chunk of their earnings are paid to tax consultants to assist them file their taxes.
“In Ghana, every SME whether micro or small businesses have to employ tax consultants to assist them file their taxes. Now this is money and it’s expensive.”
Ghana’s tax revenue to Gross Domestic Product (GD) is one of the lowest in the African sub-region, hovering around 14% while other countries in the sub region have recorded rates above 20%.
The Ghana Revenue Authority has since embarked on various revenue mobilization enforcement measures to increase domestic revenue.