An Economist and Senior Research Fellow with the Institute of Fiscal Studies, Dr. Saeed Boakye has revealed that the government has been unable to shore up revenue for the past 8-years now.
In an interview with Starr fm, the Economist disclosed that despite a number of strategies the current government has been employing to increase its revenue collection, the results have not been any good so far.
“The government’s biggest problem now is revenue generation with respect to the public sector. The government’s expenditures are beyond revenue and revenue growth has slowed down drastically for the past eight years. Different strategies have been pursued since this government came to power and they have not been able to yield significant results in terms of revenue growth.
“So the government must look at that and grow revenue not necessarily through increased taxes which the government say they don’t support and I also don’t support. Because after all, businesses and individuals need help anyway, so increasing taxes is not the way to go,” he stated.
Dr. Boakye further pointed out that there are huge potentials with Ghana’s mineral sector but that has been neglected and called on the government to turn its attention there.
“The country must generate more than it is currently doing with the oil and mining sector, so the government must look at that and take bold decisions. Ghana is doing way below what their peers are doing from oil and minerals and that causes doubt as to what we are doing with these resources.
“If you cannot make revenue from it and you give it to private investors foreign and local is not the right thing to do. These are collective resources; public endowed resources and the government must look into it critically. Some of the decisions may be tough but the government must go there and not rely on petroleum or energy taxes,” he entreated.
Meanwhile, the Ghana Union of Traders Association (GUTA) has warned any reversal of the 50 per cent benchmark policy will bring untold hardship on Ghanaian traders.
The Association of Ghana Industries (AGI) and Ghana Union of Traders Association (GUTA) are in a banter over the proposed review of the 50% benchmark for some imported products.
Even though Ghana Revenue Authority (GRA) is yet to receive policy approval for the review of the benchmark, AGI says it hopes the review is approved because it will help local industries.
However, speaking on Starr Today, Tuesday, 16th November 2021, President for GUTA, Dr. Joseph Obeng stated that they have petitioned the Council of State on the move and have spelt out its attendant consequences the Ghanaian trade would face.
“AGI members pay VAT and the government refunds it to them but the government doesn’t refund it to us. Most of these demands are coming from AGI which is wrong. They do not have shops. We sell their products for them. Almost all the things that they are saying are not true because with what they are saying, the issue is rather dicey.
“We don’t know as of now whether it has been endorsed. That’s why we held a press conference because we don’t want it to come since it will break the back of businesses. The cost of doing business at the ports keeps increasing. New taxes were brought in and we supported the government because we knew the government had suffered from COVID-19,” he disclosed.
Source: Ghana/Starrfm.com.gh/103.5FM/Isaac Dzidzoamenu
