More private sector associations have added their voice to the 5 percent National Stabilization Levy approved by Parliament last Friday, which is aimed at taxing the profits of companies and institutions in some specified sectors, which is to provide revenue for fiscal stabilization of the economy, among others.

While some have express worry over the levy, which they describe as coming at the wrong time, others are in support of it, saying that it will help shore up government’s revenue, considering the fact that the global financial crisis has negatively affected the Ghanaian economy.

The Association of Alcohol Manufacturers and Importers (AAMI) in a statement expressed utter dismay about Parliament’s speedy and single-handiness in passing the bill to impose the levy on selected business entities in the country.

According to AAMI, while no government can be faulted for wanting to achieve such objectives as technical progress, improvement of incentives, education, healthcare and infrastructural, such objectives must be approached with all the circumspection needed in order not to throw an otherwise staggering economy overboard.

It therefore entreated President John Evans Atta Mills not to sign the 5 percent Levy bill into law, but rather provide incentives for the private sector to create more skilled jobs, and to enhance more corporate social responsibility packages.

On its part, the Association of Ghana Industries (AGI) welcomed the new levy saying that given the economic situation of the country last year; it is of the view that the imposition of the levy on mining companies, banks, communication and breweries among others was a prudent decision, since it will help improve government’s revenue.

Moreover, Tony Oteng Gyasi, who is the AGI President, told CITY & BUSINESS GUIDE yesterday that because the imposition of the levy was for a short-term, they did not have qualms with it.

He revealed that government should provide a solid economic environment in order to prevent the re-occurrence of such situations, which he hopes will avert the hardship on the private sector.

When contacted, Joyce Aryee, Chief Executive Officer of the Ghana Chamber of Mines told this paper that her outfit was going to deliberate on the matter when the various players in the sector meet on next Friday.

This paper gathers that the private sector players were not consulted before the bill was drafted and passed by parliament.

The stabilization levy is expected to be paid quarterly, starting from the end of September 2009 to December 2010.
The law has 10 clauses, one of which mandates the Internal Revenue Service to collect the levy.


Source: Daily Guide/Ghana