Tax relief, falling interest rates ease business costs – GNCCI CEO

Tax relief and falling interest rates are ebbing away at production costs, but businesses still confront challenges, according to the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye. He observed that the 2026 budget is largely favorable to businesses and consumers, offering tax measures that alleviate the financial burden.

Addressing Joy News’ PM Express Business Edition, Badu-Aboagye remarked, "Relatively, business has been good. Things are a bit better as compared to previous years." Lower borrowing costs have also contributed to the decreased production costs, he noted. "And of course we’ve seen interest rates coming down. So largely, the cost of production is relatively better."

The chief executive linked the improvement in inflation to businesses' restraint in price increases, indicating they haven't been raising prices excessively. Though he acknowledged that consumer experiences might vary based on the purchased items, he maintained that the national average provided a basis for his assessment. "No, so that’s why we use the average.

So the national average is 5.5 per cent." Badu-Aboagye also pointed out that some regions recorded inflation rates above the national figure, but on average, he regarded conditions as stable. The stability of the exchange rate and the production costs played a significant role in the inflation outcome, he explained. However, he cautioned that the gains did not mean businesses had entirely overcome their difficulties.

Inflation rates for locally manufactured goods had risen slightly, indicating that domestic producers still face ongoing pressure. "If you look at the numbers, the cost of locally manufactured goods, the inflation for it went up a bit, which should tell you that we are still not out of the woods yet," Badu-Aboagye stated. He added that further tariff relief, coupled with the tax measures, could potentially lower the cost of locally manufactured goods, thereby pushing inflation rates down.