Following the passage of the three new tax measures by parliament, the Ghana National Chamber of Commerce and Industry (GNCCI) has expressed its fear that businesses in the country are likely to either fold up or relocate to neighbouring countries.

According to GNCCI, the passage of these new tax measures will further deteriorate the already tax burden on businesses operating in the country.

The Chief Executive Officer (CEO) of GNCCI, Mark Badu-Aboagye explains that the new tax measures will also worsen the ease of doing business in Ghana making the country’s neighbours more conducive environment for businesses.

Speaking in an interview with Accra-based JoyNews, Mark Badu-Aboagye predicted that businesses who will not be able to survive will relocate adding that some are already in the process of relocating from the country.

“Businesses that will not be able to survive here [Ghana] will relocate to other countries and we have seen some of them relocating. Some of them are closing down and going to the neighbouring countries because the business environment is conducive. You are losing taxes on those people that you want to get revenue from,” the CEO of GNCCI explained.

He further doubted the government’s capability to realise the earmarked four billion cedis from these taxes, arguing that there will also be a high incidence of tax avoidance.

“The incidence of these taxes is on businesses and the incidence of these taxes is on consumers of products of the businesses. Now, while the taxes that they have passed, businesses are supposed to pay and as I have said earlier, you can only tax me when I make profit … if I don’t make profit how do you tax me?” he questioned.

The taxes namely; the Income Tax Amendment Bill, the Excise Duty Amendment Bill, and the Growth and Sustainability Amendment Bill are expected to generate about GH¢4 billion annually.