Tax reforms must be business-friendly to sustain growth – Coconut Grove CEO

By Christabel DANSO ABEAM

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The Chief Executive Officer – Coconut Grove Regency Hotels, Mr. Raphael Ayitey has embraced government’s efforts to rationalise the country’s tax regime.

He described these efforts as a positive step towards developing the business environment and strengthening public-private sector collaboration.

The 2026 Budget by the government introduced tax reforms expected to ease pressure on hotels, it includes the abolition of the COVID-19 Health Recovery Levy, a reduction in the effective VAT rate to 20 percent, and the restoration of input tax credits to lower operational costs.

Acknowledging this in an interview with the Business and Financial Times (B&FT), at the company’s annual carols night event, Mr. Ayitey however stressed that there is the need for further efficiency drive to help make the tax system more convenient.

“Taxation should be considered as a form of partnership between government and the private sector, rather than a hostile relationship,” he proposed.

He further added that a consensus–building and mutual understanding between the Ghana Revenue Authority (GRA) and businesses are key in maintaining voluntary compliance.

The CEO also noted that: “When businesses are made to understand the intentions of tax, and are collected through transparent channels, and channeled into national development, trust is gained, and the economy will benefit.”

Highlighting on challenges, he linked tax reforms, and the increase on utility tariffs as a major cause of the rise in cost of doing business.

Even though he acknowledged that tariff adjustments are mostly justifiable, he urged that inefficiencies such as high transmission losses in electricity supply should be looked at.

On his stands towards the Black Stars Experience initiative by the government, he described it as a positive step towards tourism, culture and promotion and reiterated his support for the patronage of Made-in-Ghana products.

“We have to be deliberate and conscious about using made in Ghana products. We just talk about it and it doesn’t go far. There are people who are ready to meet the demands of the market, but the market is not guaranteed,” he stressed.

He cited Coconut Grove Hotel’s deliberate gesture of welcoming guests with coconut for over 31 years and established that the practice has proven that the use of locally produced food, textiles and building materials is viable and profitable and will go a long way to support farmers and manufacturers.

He further stressed the need to strengthen agricultural value chains to ensure consistent availability of local raw materials.

Concluding, he advised colleagues in the Hospitality industry to charge fair prices.

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