The Executive Secretary for Ashanti Business Owners Association, Mr Charles Kusi Appiah, has disclosed that, prices of goods on the market may not go down as expected due to the 2.5 per cent increase on Valued Added Tax, VAT.
“Government in the 2023 budget statement introduced the 2.5 per cent increase in VAT which has been approved by parliament, inflating the cost of business and by the principles of business, the final consumer will have to bear the brunt”, he said.
“As business, one of our major objectives is to give competitive prices while getting profits at the same time, so in government increases the cost of doing business, we as traders will surely pass on the additional cost to the final consumer”
Speaking on the Kumasi based OTEC 102.9 FM’s breakfast show “Nyansapo”, on Friday January 6, 2023 hosted by Captain Koda, Mr Kusi Appiah said the VAT increment alone has inflated their operations by 250 basis points, adding that the situation will push the price of goods up by 250 basis points.
Consumers prior to the yelitude complained about the high prices of items, some of which have seen prices more than tripled from 2021, calling on traders to reduce do something about it.
The calls have however intensified following a reduction in the cost of fuel in recent times.
Meanwhile Mr Kusi Appiah has emphasized that it will be very difficult for traders to slash the prices due to the increase in VAT and some other factors beyond their reach.