Financial Analyst, Mr. Daniel Anim has highlighted the significance of the various proposed tax removals, which include taxes like the E-levy and the VAT on electricity. Mr. Anim is of the view that should these taxes be removed; businesses nationwide will be relieved of what he describes as a ‘burden’ from the need to pay such taxes.
The financial analyst’s stance is in response to the minority leader in Parliament, Dr. Cassiel Ato Forson’s announcement which states that NDC legislators intend to pursue the removal of certain taxes through a private members bill.
Following the current New Patriotic Party (NPP) flagbearer, Vice President, Dr. Mahamudu Bawumia’s pledge to eliminate various taxes imposed by the current government, Dr. Forson contends that the sincerity of this commitment will be evident when the aforementioned private member’s bill is introduced in the current Parliament. He emphasizes that the support of NPP MPs for such a step is crucial to assess the integrity of the NPP flagbearer.
On a live interview with Radio Univers, Mr. Daniel Anim highlighted the significance of the proposed tax removals, such as the electronic transactions levy and emissions tax among others, in terms of their impact on the economy and citizens.
“Businesses, as well as individuals, have been overburdened with so many taxes in the quest of government generating sufficient revenue to be able to drive the development agenda of this nation. But as it stands, I’m of the view that removal of some of these taxes may in a way relieve businesses and individuals from this burden.”
“Basically, it will relieve the basis of unnecessary taxation that [citizens] have to pay. Once you purchase a product, or you enjoy a service, you pay directly. So, in a way, it will help relieve the associated burden as a result of the removal of the taxes.”
Mr. Anim further underscored the potential economic benefits and drawbacks of eliminating these specific taxes, considering their role in revenue generation for the government.
He also suggested some ways that revenue can be generated effectively without implementing too many taxes on the citizenry.
“Admittedly government needs the revenue to drive developmental agenda of this country. But equally so, effective taxes or too much taxes in the system also curtail productivity. The first thing is government should be able to minimize expenditure, if possible, curtail certain expenditure. And by that way you will be able to balance off the revenue shortfalls.”
“Government should be able to manage its expenditure in a manner that whatever revenue that flows into the economy will not be affected by reduction of prices of certain goods and services beyond the government’s touch.”
Meanwhile, University of Ghana students have questioned the vice president’s imposition of taxes now with a promise to remove them if elected. They suggest he should demonstrate this commitment while in power rather than waiting for a potential presidency.
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Story by: Nsoh Ezekiel | univers.ug.edu.gh
