Government taxes killing businesses and creating unemployment -US based Ghanaian certified public accountant
A Ghanaian certified Public Accountant based in New Jersey, United State, Alhaji Muhamad Ibn Umar has called on government to minimize what he described as “harsh tax policies” that is gradually crippling businesses in the country.
He is worried that, the continuous introduction of taxes amid the impact of covid 19, if not checked will lead to massive increase in the current unemployment in the country and its negative effects on the economy could be disastrous.
The government, he cautioned must have a second look at its tax regime and ensure that it doesn’t only favor the government but the citizens and business community as well.
The US based Ghanaian business consultant and CEO of Zaa Media, operators of Zaa Radio/Zaa TV in Tamale – Northern region attributed the growing unemployment to the unfavorable tax policies that is hurting businesses in the country.
Alhaji Muhamad Ibn Umar added Private sector players have been overburden with taxes to the extent that some prefer engaging casual workers to employing permanent staff.
The over 40-years’ experienced certified public accountant called on the Ghana Revenue Authority (GRA) to have a second look at collecting what he called estimating taxes from start-ups, indicating such taxes reduce their working capital even before they start.
Real tax incentives for businesses he explained can reduce unemployment and its effects if the government considers unemployment as a national security issue.
He reminded the political leaders in the country to bear in mind that vindictiveness of business men perceived not to belong to their parties one of the major causes of increasing unemployment; adding “when a government deliberately collapse an established business, it doesn’t only affect the owner but their dependents and government as well.
He warned that the country is yet to witness unemployment rate if the government failed to look for alternatives rather than depend on indirect taxes from start-ups and existing private sector players.
“You are yet to start a business, you are required a certified accountant to signed your documents before you proceed to GRA for tax certificate, what kind of unfriendly tax regime is that’’ he quizzed.
Commenting on the recent pronouncement of the finance minister, Mr Ken Ofor-Atta at the University of Professional Studies (UPSA) that government’s payroll was full; Alhaji Muhamad commended the finance minister for being bold to speak the truth to the young people.
On Ghana’s education system, the American business consultant could not understand why after 63 years of independence, the country’s educational system still designed such that every graduate is looking up to government for white color jobs.