‘Brace yourselves for a jump in prices of goods and services’-GNCCI warns

The Ghana National Chamber of Commerce and Industry (GNCCI) is alerting the public of further increases in the prices of goods and services in the coming days.

The chamber says this is a result of the signing into law of three new tax bills by President Akufo-Addo.

It posits that ”these taxes are going to force businesses to pass on the cost in the form of prices to customers. So we should brace ourselves for an increase in prices of goods and services”

“Businesses are not even making profits and cannot absorb these taxes. If you take the excise duty, for instance, businesses will have no option than to push the prices to consumers.”

“If you take the Growth and Sustainability levy, the businesses are not making profits and you want to tax 5% out of it. So, what we’re saying is that we don’t want businesses to collapse” Mark Badu-Aboagye, Chief Executive of GNCCI disclosed on April 17.

Again, Mr. Badu-Aboagye said the International Monetary Fund would not be happy to see businesses collapsing because the amount of money that will be spent on resuscitating affected businesses will be too much.

“I don’t think the IMF will be happy to see our businesses collapse because the amount of money that we will spend resuscitating the businesses and bringing them back to profitable level will be more than the $3 billion that we are looking for”.

He concluded that businesses expect taxes that will generate revenue for the government and ensure businesses are able to operate efficiently and profitably.

Gains made with a significant decline in inflation for March which was pegged at 45% will be thwarted by any increase in the prices of goods and services, according to the Ghana Statistical Service.

Lending rates will also remain higher when inflation surges.