Some traders who ply their business within the Adum enclave in Kumasi are lamenting that their businesses are on the verge of collapse just like the way the Ghanaian economy is falling to pieces.
The group who identify themselves as members of the Ashanti Business Community and Traders in Fast Moving Consumer Goods(FMCG hinted that they are affected by the “high and unrealistic” tax system of the economy, high rate of borrowing, low gross margin, high inflation rate and forex hikes.
The Executive Secretary of the business community, Charles Kusi Appiah Kubi, stressed that the FMCG industry is one of the biggest markets which holds an 80% share of all small and medium markets in Ghana, however they are struggling to survive.
During a press Conference on Wednesday, October 12,2022, the traders opposed the Value Added Tax (VAT) system claiming that it impacts their business negatively.
Mr. Appiah Kubi noted that the dynamics in the FMCG market makes it attractive to business thereby marking it a target for government as a source of revenue.
He stated that” the FMCG market is one of the largest markets with the longest supply chain in Ghana. It has a high revenue turn over as such it is assumed to be very profitable market. The industry is one of the biggest employing market in the SME space. It holds about 80% share of all market in Ghana. The dynamics in the market makes the market more attractive to business. This perception has created a certain impression to government upon government as the first [place] to go for revenue mobilization.” He said.
He accused government of venting their frustration on their business (FMCG) when it fails to meet its revenue target and further refuted claims of evading taxes or under declaring their sale invoices.
