The Minister of Finance and Economic Planning, Mr Seth Terpker, has justified the increases in taxes, saying the country needs to mobilise enough revenue for development.
“The challenges we faced during the energy crisis, which has minimised now, and the loan we obtained from IMF show clearly that we need a revenue mobilisation strategy and the easiest of the options is to increase taxes,” Mr Terkper said. He made this known in a speech read on his behalf at the ceremony for opening the induction course to initiate new members into the accountancy profession.
The two-day event was held for the 350 new members of the Institute of Chartered Accountant, Ghana, after they had passed the institute’s professional examinations.
The members were taken through the principles of ethical behaviour, stress management and how to invest in professional excellence, as well as an exposure on sections of the Chartered Accountant Act170.
Austerity measures needed
As part of the measures to increase taxes, a new Income Tax Act, 2015 (Act 896) that allows tax increases was introduced by the Ghana Revenue Authority (GRA) this year.
An Energy Sector Levies Act 2015 (Act 899) which imposes some levies on electricity and petroleum products was also introduced this year.
These increases in taxes and introduction of new ones have been resisted by the public and industry players, especially the Ghana Union of Traders Association (GUTA) and the Ghana Association of Industries (AGI).
Mr Terpker, however, said national and economic development could only be made possible with the payment of taxes.
He added that in Ghana, the introduction of tax reforms had met some resistance and in some cases rancour, which he said were expected.
He argued that austerity measures had become necessary to keep the ship afloat and that “these measures are not pleasant in themselves but in the long term government is hopeful that the results will provide sufficient evidence as proof.”
He further commended the ICAG for its role in organising activities for the human capital development of professionals in the accountancy field and urged the new accountants to live a life above reproach and a life worthy of emulation as expected of professional accountants.
Corruption becomes endemic
The President of the ICAG, Professor Kwame Bosiako Omane-Antwi, urged the inductees to uphold the integrity of the profession and help deal with the corruption menace which had engulfed the country.
He urged the new accountants to join forces to help deal with the corruption menace, which he said had tainted Ghana and robbed it of the needed development and progress.
Prof. Omane-Antwi asked the accountants to bear in mind that the profession was guided by the principles of integrity, objectivity, professional competence, confidentiality and professional behaviour.
ICAG support elections
He reiterated the ICAG’s promise to the Electoral Commission to support the Returning Officers in their role during the 2016 general election.
“As professional accountants, it is our civic responsibility and duty to help collate figures and thereby provide added assurance during the declaration of results,” he added.
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