The performance of the hospitality sub-sector in job creation and the deployment by the Ghana Revenue Authority (GRA) of electronic (e) invoicing system for businesses to use in issuing value-added tax (VAT) invoices to the public are some of the leading stories in the Ghanaian press on Monday.
The Graphic reports that President, Nana Addo Dankwa Akufo-Addo, has said the hospitality sub-sector is now creating two out of every 10 jobs in the country.
The President also revealed that the sub-sector became the third largest contributor to the country’s total productivity, measured by the Gross Domestic Product (GDP), coming after cocoa and, oil and gas.
The President said whereas the advent of COVID-19 pandemic in 2020 saw a decline in the sector’s growth evidenced by the 75 per cent decline in international tourism arrivals for that year and 45 per cent reduction in 2021, the rebound of the sector this year was hinged on very strong initiatives by the government to improve growth.
At the opening of the Tema branch of the indigenous hotel range, Alisa Hotel, in Tema last Friday, President Akufo-Addo indicated that the government was a cheerleader for the private sector and would continue to introduce policy initiatives aimed at creating an enabling environment for the private sector to flourish.
The 52-bed hotel, an addition to the Alisa Hotels Group, now brings to three the group’s hotel offerings, having started with a small branch in Labone and then its signature facility at North Ridge, both in Accra.
President Akufo-Addo acknowledged the economic difficulties confronting the country and said in spite of the current difficulties, “we will continue to build a business friendly environment that will enhance entrepreneurship, a vital component of economic growth and development which has been globally embraced as an important driver of economic activity and transformation.”
To that end, the government would use tourism as an effective tool for economic transformation to create jobs and prosperity for the people, the President stated.
The newspaper says that the Ghana Revenue Authority (GRA) has deployed an electronic (e) invoicing system for businesses to use in issuing value-added tax (VAT) invoices to the public.
Known as the e-VAT invoicing system, it took off last Saturday after Section 42 of the VAT Act, 2013 (Act 870) as amended to make electronic invoicing (e-invoicing) the sole medium for issuing VAT invoices.
The system is to enable GRA to counter the various malpractices that the GRA said were denying the state billions of cedis in tax revenue.
Since VAT is a consumption tax, the electronic system will allow most of the population to contribute to the tax basket and answers calls for the tax next to be widened.
Under the first phase of the implementation, the exercise will cover more than 600 large taxpayers, including listed companies, which account for more than 80 per cent of domestic revenue and up to 90 per cent of VAT collections.
It is expected to cover all VAT taxpayers by 2024.
The Head of the Domestic Tax Revenue Division (DTRD) at GRA, Edward Apenteng Gyamerah, told a section of the media last Friday that the e-VAT invoicing would also help the authority to monitor transactions in real-time, thereby ensuring transparency and eliminating under-invoicing, under carding and non-issuance of VAT invoices.
He said through the exercise, GRA aimed to raise VAT’s contribution to tax revenue to 20 per cent by December this year and 30 per cent in 2024.
Currently, VAT accounts for a maximum of 18 per cent of annual total tax revenue, below the 30 per cent average done by Ghana’s peer countries.
The Ghanaian Times reports that the Economic Community of West African States (ECOWAS) and the African Union (AU) have condemned the recent military takeover in Burkina Faso, describing it as a setback to the restoration of constitutional rule.
The two organisations have also asked the military junta to refrain from acts of violence and comply with a laid down process agreed with transition authorities to return the country to constitutional order by July 1, 2024.
This was contained in separate statements issued by ECOWAS Chairman, Guinea-Bissau’s President, Umaro Sissoco Embalo, and AU Commission Chairperson, Moussa Faki Maham, at the weekend.
In the country’s second coup in a year, Burkina Faso military leader, Paul-Henri Damiba, was on Friday deposed as army Captain, Ibrahim Traore, took charge, dissolving the transitional government and suspending the constitution.
Traore said on Friday evening that the new group of officers removed Damiba due to his inability to deal with a worsening armed uprising in the country for which he initially toppled the civilian government.
“ECOWAS finds this new coup a major setback at a time when progress had been made, particularly through diplomacy and efforts undertaken to ensure an orderly return to constitutional order by 1st July 2024”, the ECOWAS statement said.
While reaffirming its “unreserved condemnation” of any seizure or retention of power by unconstitutional means, it demanded the scrupulous respect of the timetable already agreed upon with the Transition Authorities for a rapid return to constitutional order.
“ECOWAS hereby warns any institution, force or group of persons who, by their actions, may hinder the planned return to constitutional order or contribute to undermining the peace and stability of Burkina Faso and the Region.
“The ECOWAS Commission remains seized with developments in the country”, the statement said.
The AU statement extended the AU Chair’s support for ECOWAS and expressed his deep concern about the resurgence of unconstitutional changes of the government in Burkina Faso and elsewhere on the African Continent.
It said the support was in conformity with the Lomé Declaration of Year 2000, the African Charter on Democracy, Elections and Governance and the Accra Declaration on Unconstitutional Changes of Government.
The Chairperson called upon the military to immediately and totally refrain from any acts of violence or threats to the civilian population, civil liberties, human rights, and ensure strict compliance with electoral deadlines for the restoration of Constitutional order by 1 July 2024, at the latest.
“The Chairperson reaffirms the continued support of the African Union to the people of Burkina Faso to ensure peace, stability and development of the country,” the AU statement said.
The newspaper says that the Association of Ghana Industries (AGI) has called for collaboration between the government and industries to chart a competitive path towards building a stronger economy for jobs and shared prosperity.
The AGI believed that the spill over from the Ukraine and Russia War, coupled with the adverse effects of COVID-19 could be mitigated through greater collaboration between the private and the public sectors for the industrial development of the country.
Mr Joseph Garbrah, the Chairman of the AGI, at the annual general meeting for the Western and Central branches of the Association, said the private sector was a key engine in the country’s growth agenda and must be given the needed attention through well tailored policies and programmes.
The meeting hinged on: “Levering Public Private Collaboration to accelerate Sustainable Industrial Development,” sponsored by the EU Investment Promotion and Business Linkages Project.
Mr Garbrah said the much talked about sustainable industrial development should revolve around leveraging the private public sectors, finance and investment by companies and corporations.
“More largely it should be about leveraging resources, skills and knowledge that the private sector can bring to the table to support and implement sustainable industrial development,” he said.
Mr Francis Osei Kusi, a Business Development Linkages Expert, urged members of the AGI, particularly Small and Medium Enterprises (SMEs) to be investment, export and linkages ready through the right governance and best business practices.
He said the country could boast of many entrepreneurs but lacked well thought out business sustainable plans into the future.
“Most businesses have the wife and husband as the board with no proper structure…I remember my days with the Commercial Bank and the many businesses we helped in this region but, today, looking back, I can count only a few surviving ones,” Mr Kusi said.
He, therefore, encouraged them to develop their businesses to transcend generations.
GIK/APA