By: Nicholas Osei-Wusu, Kumasi
Store Operators at Adum in Kumasi say even though they are ever ready to comply with the tax regimes of the country, they will not support implementation of any tax policy that has the potential to cripple their businesses.
Addressing the media in Kumasi on Wednesday October 12, 2022, the store operators mentioned in particular the Flat rate of the Value Added Tax, VAT as one tax regime that is very unfriendly to business growth hence the urgent need for the government to review it to allow for easy compliance to boost national revenue generation for development.
Since Monday, October 10, 2022, operators of stores at the Central district of Adum in Kumasi, the Ashanti regional capital, have refused to open their businesses to the public.
These aggrieved businessmen and women are blaming their action on three main concerns which are unfriendly tax policies being implemented by the government including the rate of the Flat Value Added Tax or VAT, deployment of staff of the Ghana Revenue Authority, GRA to stay at the stores everyday to ensure that the operators record accurate sales so that the appropriate taxes to be collected.
And the depreciation of the local currency against the US Dollar which they claim is their major trading currency.
According to the traders, efforts to get duty bearers to address these concerns have proven fruitless thereby compelling them to resort to the close down of their businesses to prove the seriousness they attach to their grievances.
This is the first, in recent times that traders who constitute a substantial proportion of the entire informal business community in the Ashanti region have closed their stores.
The action, which came as a surprise to members of the public, has since led to many retailers who have been traveling from the northern sector of Ghana and the Western North region to Kumasi to procure provisions, food items and other households fast-moving consumer goods not only stranded by also frustrated after risking their journeys from those long distances.
Workers at these stores are also left wondering about their job security as a result of the uncertainty surrounding when the agitated store operators would return to business.
Mr. Appiah-Kubi noted that, even though the traders are ready and willing to commit to all their tax obligations to the State, they will not support any policy that has the potential of collapsing their trade.
“We are ready to pay our Corporate income Tax. We are ready to pay our PAYE. But, we can’t pay the VAT”, he insisted.
Mr. Appiah-Kubi claimed that the issues raised by the traders are seriously undermining the government’s revenue generation efforts, hence should be given attention.
According to him, the “government’s inability to achieve its revenue mobilization target is an indication that there are fundamental challenges within the sector. Sadly, government has failed to show leadership to address these challenges.”
The traders announced their resolve to use serious actions including demonstrations, in seeking resolution to their concerns.
