The Food and Beverages Association of Ghana (FABAG) has voiced strong opposition to the Ghana Revenue Authority’s (GRA) introduction of new machines for tax stamps, describing the move as a financial burden on struggling businesses.
Rev. John Awuni, President of the Association, expressed concern that the GRA is placing the cost of acquiring these new machines on business owners, who are already facing economic hardships.
Rev. Awuni, in an interview on ABC IN THE MORNING on Tuesday, September 24, 2024, argued that the GRA’s demand was unreasonable.
“More especially, you (GRA) are not buying the machines, you are asking the businessman to buy the machines so you can collect your tax,” he stressed.
He lamented that the previous machines were only installed in 2020, making the new upgrade premature.
“It is not the right time,” he said, questioning, “If the machines are bought, what will happen to the four-year-old machines?”
Rev. Awuni emphasized that the initial cost of installing the new machines could exceed one million dollars, a staggering amount for businesses already grappling with exchange rate losses and other economic challenges.
He further lamented the lack of financial support from the GRA, stating, “You are not willing to give businesses money to procure this machine. They should do that at their own cost.”
The Association has called on the GRA to reconsider its decision, as they believe the initiative does not benefit the business community, which is a crucial partner in national development.
“Much as we are partners in development, we think that this one will not… with the benefit of the business person,” Rev. Awuni concluded, urging the GRA to halt its plans and engage with businesses to find a more viable solution.
FABAG initially released a statement entreating the authority to halt the introduction of the new machines.
“We are by all humility unequivocally reiterating our rejection of any moves to introduce new machines to replace what we currently use in our facilities for the excise tax stamp system,” FABAG stated firmly, emphasizing the detrimental impact on struggling businesses.