Tax increments show the inability of government to find other streams of tax revenue.

tax increment

“In the last couple of years the revenue envelope has failed to respond to various tax measures that has been implemented.”

Prof. Godfred Bokpin, head of the University of Ghana’s Business School, said in an interview on Joy News’ PM Express show.

He was speaking about the tax increases in the 2019 mid-year budget review by the Finance Minister, Ken Ofori-Atta in parliament on Monday, 29 July.

The Minister proposed an increment in the Energy Sector levies (EXLA) and Communication Services Tax (CST).

These taxes were approved on Friday, 2nd August by Parliament.
The EXLA has increased prices of petrol and diesel have been increased by 90 pesewas per gallon. Liquefied Petroleum Gas (LPG) has been upped by 8 pesewas per kilogram.

The upward review in the CST means every Ghanaian, who uses a mobile phone will now pay more, for the same time spent making calls and browsing the internet.

It will be virtually impossible for any country to develop without taxes. So, when the present government came into power, it indicated that it will improve tax collection in the country.

‘The tax base will be broadened by formalizing the economy through the national identification card system among others. We believe that these initiatives will maximize revenue collection while rationalizing expenditures.’ Finance Minister Ken Ofori-Atta said in 2017.

This, the government said will help increase the number of tax payers in the informal sector. The informal sector is defined by the Ghana Statistical Service as businesses which are not registered with the Registrar-General’s Department and do not keep formal accounts.

It is two and a half years in the government’s tenure and the issuance of the National Identification Card is not even half way complete.

The Tax Identification Number (TIN), which is a unique number generated by the Ghana Revenue Authority (GRA), for persons and companies upon application, has been relatively successful in increasing tax compliance. The TIN has been in existence for a while now but this government’s efforts has made it more successful.

But, the issue is many Ghanaians in the informal sector don’t have (TINs).

The informal sector’s contribution to the economy was GHC73 billion in 2017. That was 28.6 percent of the total value of goods and services produced in Ghana, also known as (GDP).

Available statistics from the Ghana Statistical Service indicate that close to 1.2 million Ghanaians are registered tax payers. Only 200,000 Ghanaians in the informal sector are registered tax payers.

This burdens 1.2 million Ghanaians with the duty of providing taxes to fund government’s numerous projects.

Professor Bopkin indicates that the increase in taxes were “inevitable” because as a country we have failed to look at other ways of generating tax revenue.’

According to the economist, because of this failure our leaders use the “lazy approach”, which is imposing excess taxes on the citizenry to generate revenue.

“This has been Ghana’s problem, we are more efficient when we are in opposition, when we are in government then the reality becomes hard for us to manage,” he added.

He also said, in-addition to our woes, those who willingly comply with paying their taxes are “very low”.

The ability of Ghana’s leaders to devise creative ways to find other streams of tax revenue for the country is clearly challenged.

Relentlessly, the Akufo-Addo led government has pushed the idea of moving Ghana’s economy from “taxation to production”.

However, the old ways of imposing stifling taxes on Ghanaians still persists.

This act defeats the reasons why Ghanaians voted for the present government, one of which was to be freed from  unnecessary taxes.

By: Kofi Boateng (kofiboatengj243@gmail.com)

Publish on Apt

Do you have any Social, informational, educational or entertaining stuff that should be featured on www.aptnewsghana.com?

Please submit your stories, pictures, and videos to us via WhatsApp: +233548388489 or click on the icon on your screen. Alternatively, email us: aptnewsghana@gmail.com

RSS APO Group – Africa-Newsroom: latest news releases related to Africa

  • Landmark Alliance Launches in Africa to Fight COVID-19 Misinformation December 3, 2020
    Download logoThe World Health Organization (WHO) today launched a new alliance, the Africa Infodemic Response Alliance (AIRA), to coordinate actions and pool resources in combating misinformation around COVID-19 pandemic and other health emergencies in Africa. Digital platforms have been inundated with COVID-19-related information since the pandemic began in late 2019. Information about the virus has […]
  • Democratic Republic of Congo (DRC)’s President H.E Félix Tshisekedi confirmed to deliver the keynote address at Mining Indaba Virtual December 3, 2020
    Download logoInvesting in African Mining Indaba (Mining Indaba) (www.MiningIndaba.com), part of Hyve Group Plc is delighted to announce the first line-up of keynote speakers for Mining Indaba Virtual, which will be held on 2-3 February 2021. Mining Indaba is renowned for offering a high calibre of speakers, and 2021 is no exception. The organisers are […]
  • Local Currency Financing for Off-Grid Energy Solutions in Africa Limited, Needs Scaling Up - African Development Bank Report December 3, 2020
    Download logoAlthough advantageous, local currency financing for off-grid renewables projects and businesses in Africa is still limited, according to a new report released by the African Development Bank (https://www.AfDB.org/). The report, Exploring the Role of Guarantee Products in Supporting Local Currency Financing of Sustainable Off-Grid Energy Projects in Africa, summarized findings of an in-depth study […]
  • Blue Prism Intelligent Automation Now Available in AWS Marketplace December 3, 2020
    Blue Prism (AIM: PRSM) (https://www.BluePrism.com/) today announced the availability of Blue Prism intelligent automation software in AWS Marketplace, giving Amazon Web Services (AWS) and Blue Prism customers another avenue for automation in the cloud. The listing includes Blue Prism on an Amazon Machine Image (AMI) instance with a set number of digital workers, plus connectors […]
  • WHO Africa Online Press Briefing: Responding to COVID-19 Misinformation in Africa December 3, 2020
    [youtube https://www.youtube.com/watch?v=6uh6ksrinXc?info=Ome4Noq+X0FMCsJ8xIe3mRsoQmDmfCH6YVHlEAq2XjeSdedO5rCCcYKWa70L/iPkuoMFhQ4RotPKs7G3ezZB5Goz21MZ9hBj1w/PsJpCYCgOwPkl4JiAl8CcVqR9Za8vSigt3zlivpOjLl/urRssnIdpn9ylMrpK3kFlHaQ7UxQ=&w=854&h=480]Distributed by APO Group on behalf of WHO Regional Office for Africa.Media filesDownload logo
  • Coronavirus - Kenya: Distribution of Cases by Counties (2 December 2020) December 3, 2020
    Download logoThe cases are distributed in the Counties of: Nairobi (203), Nakuru (118), Kilifi (83), Kirinyaga (71), Kericho (57), Uasin Gishu (52), Mombasa (41), Embu (41), Busia (40), Nyandarua (24), Kiambu (23), Kisumu (22), Isiolo (21), Nyeri (18), Nandi (16), Murang’a (14), Homa Bay (13), Kakamega (12), Nyamira (9), Turkana (8), Kajiado (7), Kwale (7), […]
  • Coronavirus - Kenya: COVID-19 updates (2 December 2020) December 3, 2020
    Download logo961 people have tested positive for the virus, from a sample size of 7,780 tested in the last 24 hours, bringing to 85,130 the number of confirmed positive cases in the country. The cumulative tests are now 901,426. From the cases 944 are Kenyans while 17 are foreigners.Distributed by APO Group on behalf of […]
  • SouthBridge Group announces Two Major Transactions in the Republic of Togo December 3, 2020
    Download logoSouthBridge Group (www.SouthBGroup.com), the official financial advisor of the Togolese government, today announced two transactions with Olam International Limited and its subsidiary Arise Special Economic Zone. SouthBridge Group, an innovative, pan-African financial advisory and investment firm, working with corporates, sovereigns and multinationals across the Continent, concluded two significant transactions in the Republic of Togo, […]
  • Fabio Aru signs for Team Qhubeka ASSOS December 3, 2020
    Team Qhubeka ASSOS is thrilled to announce that Fabio Aru, the 2015 Vuelta a Espana champion, will be riding for Africa’s only UCI-registered WorldTour team in 2021. Aru, 30, has a stellar palmares having finished second and third at the Giro d’Italia, in 2015 and 2014 respectively, and fifth at the Tour de France in […]
  • Signing of the Advisory Services Agreement between the Islamic Corporation for the Development of the Private Sector (ICD) and Xalq Bank, Uzbekistan December 3, 2020
    Mr. Ayman Amin Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-idb.org), the private sector arm of the Islamic Development Bank (IsDB), and Mr. Farkhod Islomovich Salamov, Chairman of the Management Board of Xalq Bank, signed an Advisory Services Agreement in relation to launching of an Islamic Window […]
About Editor 606 Articles
Joe Bright Nyarko Journalist/Communication Researcher. Environment & Sustainability Advocate. Managing Editor of aptnewsghana.com, a non-profit news portal with bias towards environment and sustainability issues, rural development policies and gender & inequality.