Seth Terkper criticizes Gov’t’s proposed tax revenue measures
Government’s proposed revenue measures, including the Income Tax Amendment Bill, the Excise Duty Amendment Bill, and the Growth and Sustainability Amendment Bill, have received mixed reactions from financial experts and former officials. While Economist Prof Stephen Adei believes that the new measures are necessary for the country’s survival, former Finance Minister Seth Terkper has criticized them as draconian and having technical defects.
The bills aim to generate about GH¢4 billion annually when passed. However, concerns have been raised about the impact of the measures on businesses and the economy as a whole. Terkper, speaking on JoyNews’ Upfront, pointed out that the tax on businesses that do not declare a profit in five years and the minimum taxes irrespective of business size were previously replaced under the economic recovery programme and Structural Adjustment Programme in Dr Botchway’s era.
Terkper’s criticism of the measures highlights the potential negative impact on businesses that may struggle to operate should the measures receive parliamentary approval. He further pointed out that the tax audit would examine records for non-payment and that there is a lack of continuous investment in the domestic tax system.
Prof Stephen Adei, on the other hand, believes that the new measures are necessary for the country’s survival. He urged Parliament to ensure the bills are passed, although not palatable. Adei argued that rising prices are the same as paying taxes, and higher inflation leads to higher tax collection. Inflation in Ghana has been on the rise, and the government needs to increase revenue to address the country’s mounting debt.
The Ghanaian government’s revenue measures are part of its efforts to secure an International Monetary Fund (IMF) programme. However, the bills’ potential impact on businesses and the economy raises concerns about their effectiveness in addressing the country’s financial challenges. The government needs to consider alternative revenue sources that will not stifle business growth and negatively affect the economy.
Furthermore, Ghana needs to address the root causes of its economic challenges, such as corruption and weak institutions, to ensure sustainable economic growth. The government needs to focus on improving the tax system’s efficiency and effectiveness, promoting investment in the country, and addressing issues such as inflation, debt, and the balance of trade.
The proposed revenue measures by the Ghanaian government have generated mixed reactions from financial experts and former officials. While Prof Stephen Adei believes that they are necessary for the country’s survival, former Finance Minister Seth Terkper has criticized them as draconian and having technical defects. The government needs to address concerns raised by stakeholders, including the potential impact on businesses and the economy, to ensure that the measures are effective in addressing the country’s financial challenges. Ghana needs to focus on addressing the root causes of its economic challenges to ensure sustainable economic growth.
