TLG Welcomes Dr. Bawumia's Policy On Taxes; Government Must Reduce Taxes Now!
The Taxpayers League Ghana welcomes policies announced by Dr. Bawumia on tax reductions as incentives to production and business growth.
It is refreshing to note that our continuous cry that taxes are becoming heavier on individuals and business organisations is getting the attention of political players and policy makers.
The decision by the former deputy governor of the Bank of Ghana, should the New Patriotic Party win the December Presidential polls, to see to; the reduction of corporate tax rate from 25% to 20%, removal of import duties on raw materials and machinery for production, elimination the special levy on imports, abolishment of the 17.5% of VAT on imported medicine, among others, will not only reduce the burden on individuals workers and corporate organisations, but will boost production and reduce unemployment.
It is our view, just as the Vice Presidential candidate of the New Patriotic Party espoused during his lecture las week at the National Theatre, that the tax base should be broadened by formalising the economy. Stringent laws should rather be made to ensure compliance of existing taxes, whilst government reduces its expenditure.
The Auditor General's report puts unaccounted government funds at GHC 5.9 billion. This is between 2012 and 2014. It presupposes that, the problem with our revenues is not insufficiency, but corruption, thievery and deliberate reckless expenditure by appointees of government.
We strongly maintain that taxes in Ghana are too high, the NDC government must quickly review tax laws to alleviate the tax burdens on businesses. Taxes such as the 17.5% VAT on real estate, 17.5% VAT on domestic airline, 17.5% VAT paid by micro and small enterprises are all too burdensome and must be removed.
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