Hospitality Industry Advocates for Simplified Taxation
The Ghana Hoteliers Association (GHA) is urging the government to consolidate multiple taxes—including the National Health Insurance Levy (NHIL), VAT, and the GETFund levy—into a single, streamlined tax for the hospitality sector.
According to the Association, the current tax structure, combined with high inflation, exchange rate volatility, and rising utility costs, is straining hotel businesses. Industry players believe a simplified tax system will foster growth and sustainability in the sector.
Economic Challenges Facing Ghana’s Hospitality Sector
The hospitality industry is a crucial contributor to Ghana’s economy, supporting tourism, employment, and local businesses. However, operators face mounting financial burdens due to:
- High inflation rates affecting operational costs.
- Unstable exchange rates, increasing import costs for essential goods and services.
- Rising utility tariffs, adding to the cost of maintaining hospitality facilities.
With the government set to present the 2025 national budget, stakeholders are calling for policy interventions to address these challenges.
Ghana Hoteliers Association’s Appeal to Government
Speaking to Citi Business News, Dr. Edward Ackah-Nyamike, President of the Ghana Hoteliers Association, emphasized the urgency of tax reform.
“We have made our points very clear over the years, so we want to see something on taxes and levies hopefully reduced and some taken out, as promised by the government. We also want to see measures in place to deal with the economic environment that affects our business, like inflation, foreign exchange, and utility tariffs as well.”
He further stressed the importance of tax consolidation:
“If any of these things are dealt with in a manner that will show some positive signs that will allow our business to flourish, why not… we will be very happy. We have been pushing for a consolidation of the taxes so that, for the hotel industry, we will have one tax that consolidates VAT, GETFund, NHIL, and all that.”
Potential Benefits of Tax Reform in the Hospitality Industry
A consolidated tax system could significantly benefit the hospitality industry by:
- Reducing the administrative burden on hoteliers.
- Enhancing financial predictability for businesses.
- Encouraging investment and expansion in the sector.
- Boosting tourism growth, making Ghana a more competitive destination.
For a deeper understanding of Ghana’s tax system, visit the official Ghana Revenue Authority (GRA) website.
Looking Ahead: Will the Government Act?
With increasing pressure from industry stakeholders, the government’s response in the 2025 budget will be closely watched. The hospitality sector remains hopeful that tax reforms will ease financial burdens and promote long-term economic growth.