For many Ghanaians, the return of John Dramani Mahama to the presidency brings a sense of relief, as they believe he has the competence to rescue the country from its current economic challenges.
Following his victory over the New Patriotic Party (NPP), expectations are high, and citizens are eager to see tangible transformation rather than excuses or blame games.
Among those with heightened expectations are business owners and customers who have long struggled with excessive taxes, which they say have crippled their businesses.
In an interaction with some business owners at Adum, Kumasi, they recounted how the introduction of the COVID-19 levy in 2021 and the Electronic Transaction Levy (E-Levy) in 2022 significantly impacted their operations.
They explained that before these taxes, businesses were thriving, but the levies increased the cost of goods, forcing them to raise prices and ultimately reducing customer demand.
Now, with President Mahama’s promise to scrap both the COVID-19 levy and E-Levy, business owners in the Ashanti Region are optimistic about a potential business boom. They eagerly await the new government’s fulfilment of this promise, hoping it will ease their financial burdens and revitalize commerce.
For them, a better economy and improved living conditions under the Mahama-led administration are non-negotiable.
Hope for Business Growth
President Mahama has pledged to implement key economic relief measures within his first 120 days in office, including the removal of nuisance taxes. Business owners are not only hopeful but also advocating for the introduction of a flat duty rate, arguing that high import duties significantly contribute to the cost of goods.
Victoria Yeboah, a trader, emphasised the impact of the levies on business operations.
“Before the introduction of the COVID-19 and E-Levy taxes, goods were relatively affordable. However, these taxes have led to a significant increase in prices. We are hopeful that President Mahama’s promise to scrap these taxes will bring much-needed relief. Additionally, we appeal for a flat duty rate to enhance business activities and regulate pricing.”
Another businesswoman, Charity Owusu, added that eliminating these taxes would reduce wholesale prices, which would, in turn, lower retail prices and boost consumer purchasing power.
While some traders have called for a price control system to regulate excessive pricing, they acknowledge that this would be difficult to implement, since most businesses are privately owned.
Bismarck Frimpong Kwateng, a retailer, noted that price control measures could help but would be challenging to enforce.
“A price control system could be beneficial, but implementing it would be difficult because retail shop owners source products from various brands at different prices.”
Another retailer, Frank Osei-Tutu, echoed similar sentiments.
“Price control would be a great idea, but since these businesses are privately owned, the government cannot dictate prices. Such a system would only work if these businesses were government-owned.”
Will Mahama Deliver?
With high expectations and increasing calls for economic reforms, all eyes are on President Mahama to deliver on his promise of scrapping nuisance taxes and building a strong economy within four years.
Will his administration succeed in creating a more business-friendly environment? Only time will tell.