IEA calls for ‘Special Tax’ on extractive companies, ‘Super Profit Tax’ on telcos and banks
The Institute of Economic Affairs (IEA) has called for the introduction of a “Special Tax” for extractive companies and a “Super Profit Tax” for telecommunications and banking firms in the wake of the Domestic Debt Exchange program.
The organization believes that this will increase domestic revenue and promote economic growth.
According to the Director of Research, Dr. John Kwakye, the government has been placing too heavy a burden on individuals with taxes and alternative solutions must be sought.
“We don’t tax companies enough that work in the areas that are booming. As a developing economy, that’s where we should be taxing and not chasing individuals and poor people for their money,” he said.
Dr. Kwakye also emphasized the need for the government to close tax loopholes, particularly in regards to import taxes and property taxes, by enforcing legislative policies.
He also called on the government to renegotiate and scale back payments to Independent Power Producers as a form of burden sharing for the Domestic Debt Exchange program.
The IEA’s recommendations come amid concerns over the country’s economic growth and increasing debt burden.
These proposed measures could potentially provide a much-needed boost to the country’s revenue and provide a more equitable distribution of the burden of debt repayment.
