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The Ghana Union of Traders Association (GUTA) says they will resist government’s attempt to increase and introduce new taxes.

According to them, it will collapse businesses and further worsen hardships in the country.

Speaking on Okay FM’s 'Ade Akye Abia' programme, National President of the Association, Dr. Joseph Obeng explained that any introduction of new taxes or increment in taxes will automatically increase prices.

"We are asking government to be innovative, reduce expenditure and find new ways of getting money but not introducing or increasing the current tax net," he added.

He added that the government should be innovative, find new ways of getting money rather than using the old method and burdening businessmen with taxes.

Government of Ghana has hinted at increasing taxes in its mid-year budget review.

Ahead of the mid-year budget presentation to Parliament, a member of the New Patriotic Party (NPP) and former Director of the Danquah Institute, Gabby Asare Otchere-Darko hinted that government will increase taxes to raise more revenue.

In a Facebook post on Thursday, the former Director of Think Tank Danquah Institute wrote “will you support a VAT increase to keep your lights on, your secondary schools filled, your school kids fed, your streets clean, your streets safe, young graduates employed, and decent, affordable homes built for working families?.”

His post comes after our sources gathered that the government is considering introducing taxes such as;

1. An increase in Communications Service Tax from 6% to 12%

2. A mandated minimum corporate tax

3. An expanded stabilization tax?

4. Collateralize royalties from minerals to enable government raise loans

5. Increased social security (SSNIT) contributions to the NHIS?

6. A Financial Service Tax

The government is also likely to increase the Value Added Tax (VAT) from 17.5% to 21% in the mid-year budget set to be presented to Parliament on Thursday, July 19, 2018.

The country’s Financial Management Administration Act requires the Finance minister to come before Parliament not later than July 31, prepare and submit to parliament a Mid-Year Fiscal Policy review.

This often allows the Finance minister the opportunity to review the targets, especially when it comes to the review,

a. A brief overview of recent Macroeconomic Developments of Governments

b. Update of Macroeconomic forecast undertaken by the government

c. Analysis of total revenue and expenditure and performance for the first 6 months of this year

d. Also where necessary, revise the Medium Term Budget outlook the budget outlook and Expenditure framework.