The recent increases in utility rates, taxes, and levies have been lamented by the Ghana Hotels Association (GHA), claiming that “they are incredibly crippling the hospitality industry.”
The hospitality industry already suffered tremendous losses from the COVID-19 pandemic, and instead of helping to rebound faster, the government had slapped it with hefty taxes, particularly property rates, which had deepened its woes, the association lamented.
The immediate past chairman of the GHA, Cental Region, Mr. Isaac Nkoom, said the property rate regime currently being implemented by the Ghana Revenue Authority had become a “killer to the sector’s rebound.”
“How could a facility that pays a property rate of GH¢700 suddenly rise to GH¢20,000 or from GH¢1,800 to GH¢50,000? We are not against the increase and the collection by GRA, but we are against the astronomical increases killing our businesses,” he said.
Mr. Nkoom said the challenges had also been exacerbated by 20 multiple and duplicate taxes and levies, which were “suffocating the growth of the sector.”
“These include the NHIL, VAT, GETfund, COVID-19 levy, GTA levy, EPA levy, FDA levy, MMDAs levy, Fire Service levy, and one percent tourism levy.”
He urged the government to consider the reduction in VAT charges as the hotel business was gradually grinding to a halt due to very low patronage because of the economic hardship.
Source: Ghana/Max TV/Max FM/Max.com.gh/Princess Sandra Richardson
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