The objective of this pre-budget survey is to solicit for views from business leaders across industries on the impact of existing policies on their businesses and to provide relevant feedback to the government through the Ministry of Finance on key insights to be considered for its subsequent budget cycles.
The report is structured into three thematic areas namely; (1) the global megatrends that are shaping governmental policies; (2) survey results & findings and key insights for consideration by government; and (3) appendices supporting the survey results.
The following is a snapshot of the key findings that we obtained from the survey:
- On Complexity of tax laws: most respondents indicated that local tax laws are complex.
- On Fiscal measures: majority of respondents indicated that fiscal measures introduced both prior to COVID-19 and after COVID-19 had minimal impacts on their businesses. Respondents also indicated that the three (3) major fiscal measures that should be prioritised by government in the 2022 budget are (1) reducing the 5% Financial Sector Recovery Levy, (2) Restoring NHIL/ GETFund input claim, and (3) Restoring the use of turnover thresholds for qualification to apply 3% VAT.
- On factors affecting business growth and profitability: Respondents also indicated that digital infrastructure and services and other factors such as cost of funding, availability of forex, infrastructure and stability of the cedi played significant roles on their business growth and profitability and as such need critical attention.
- On key stay awake issues for businesses: Respondents suggested that government should pay critical attention to the depreciation of the Cedi, high business operational costs, high borrowing costs, high rate of taxes, increased government borrowing among others.
- On the stage of business recovery: Most respondents indicated that their businesses are at the resilience stage of responding to the COVID-19 crisis. Businesses have absorbed and adapted to the changing environment. This implies that most businesses are taking stock of the crises (health and economic) and doing anything and everything possible to stay in business.