PEF seeks revision of upfront tax payments
The Private Enterprise Federation (PEF) has made a strong case for the GRA to review the current time frame for businesses to remit their taxes on the sale of products.
The CEO of PEF, Nana Osei Bonsu explains that the current regime has impacted adversely on businesses due to delayed payments for the provision of services or sale of products to clients.
He tells Citi Business News the issue has also compelled most of them to resort to loans to meet their tax obligations hence increasing their cost of doing business.
“Government most of the time does not allow them enough time to collect what they are responsible to transmit so they have to use their own income to be able to remit to government which is eroding their working capital. Sometimes they have to borrow from the financial institutions at a cost,” Nana Osei Bonsu asserted on the sidelines of a tax seminar on the new Amnesty Law.
Businesses, particularly Oil Marketing Companies (OMCs) are affected the most under the current tax remittances regime.
Per law, they are expected to remit their taxes within the first twenty-one days of the month (by the third week) of the month.
But Nana Osei Bonsu believes this must be revised and if possible, discount to such businesses.
“So that is why we are thinking that the government should look into the burden on them as to the collection and remitting. If anything at all, the government could give them discounts for the services that they render because they have to get employees and all that before they remit,” he added.