In a recent development within the Ghanaian business landscape, the debate over the implementation of digital tax stamps has sparked a conversation between key industry figures. The Executive Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has responded to claims made by the CEO of the Association of Ghana Industries (AGI), Seth Twum Akwaboah, regarding the potential impact of digital tax stamps on tax compliance.
During the Annual General Meeting (AGM) of the AGI’s Tema Regional Branch, Akwaboah expressed his views on the challenges faced by businesses in adopting the use of digital tax stamps. While acknowledging the positive step taken by the government in introducing digital stamps, he also highlighted the burdensome and costly nature of purchasing and affixing physical tax stamps.
In response, John Awuni has contested Akwaboah’s position, citing the Ghana Revenue Authority’s (GRA) reported lack of significant compliance issues under the current tax stamp regime. He emphasized that the existing system has proven to be effective, with no widespread tax evasion or shortages reported by the GRA due to lapses in the tax stamp program.
Furthermore, Awuni stressed the importance of embracing technological advancements while ensuring that such changes do not place undue financial burdens on manufacturers. He suggested that if the GRA identifies compliance gaps, they should take full responsibility for procuring and installing new machines at the manufacturers' premises at the government's expense, rather than passing on the cost to the businesses.
As the dialogue continues between industry stakeholders, it is evident that there are differing perspectives on the implementation of digital tax stamps and their impact on tax compliance. It remains to be seen how this debate will unfold and whether a consensus can be reached that addresses both the need for effective tax compliance and the concerns of businesses regarding the financial implications of technological changes. The outcome of this discussion will undoubtedly have significant implications for businesses and tax administration in Ghana.
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