National Tax Forum: Prioritize quality expenditure over tax hikes – Professor Bokpin tells Gov’t
Economist and Finance Lecturer at the University of Ghana Business School (UGBS), Professor Godfred Bokpin, has offered a candid perspective on Ghana’s fiscal landscape.
Contrary to the prevailing narrative emphasizing increased taxation by Government, Professor Bokpin argued that the paramount focus should be on elevating the quality of Government’s expenditure.
Identifying excessive expenditure and corruption as longstanding impediments to Ghana’s economic progress, Professor Bokpin remarked, “If we deal with corruption and expenditure, this country will be better off.”
He further emphasized the futility of relentless taxation in the absence of effective governance mechanisms, stating, “We can tax everything, including the air we breathe, and still not make progress if we don’t deal with corruption and excessive expenditure.”
Highlighting the disparity between Ghana’s fiscal performance and that of Malaysia, Professor Bokpin pointed out that despite comparable levels of tax revenue and expenditure, Malaysia enjoys a more favorable economic standing due to its superior quality of expenditure.
“Even though Ghana has not been able to significantly grow its revenue, that hasn’t stopped the Government from spending excessively,” he observed.
Further elucidating the intricacies of Ghana’s tax system, Professor Bokpin revealed that the country currently employs over 27 tax handles applied to goods and services. This complexity, he suggested, could be counterproductive without corresponding improvements in expenditure quality and governance.
In sum, Professor Bokpin’s insights underscored the urgent need for Ghana to recalibrate its fiscal priorities, shifting from a singular focus on revenue generation to a more holistic approach that addresses corruption, curtails excessive expenditure, and enhances the efficiency and quality of public spending.
Prof Bokpin made the above assertions speaking at the 2024 National Tax Forum on the theme “Enhancing Taxation in Ghana, Joint Participation.”
The Forum was organized by Revenue Mobilisation Africa (RMA) and the Ghana Anti-Corruption Coalition (GACC) and sought to promote stakeholder consultations on the enhancement of Ghana’s revenue mobilization efforts.
