A Deputy Finance Minister, Dr Alex Ampaabeng, has disclosed that the government will not impose new taxes in the upcoming mid-year budget.
Businesses and economists have expressed worry about the heavy tax burden, urging a reduction or elimination of some taxes to alleviate financial pressures.
Speaking in an interview on Wednesday, June 12, Dr Ampaabeng confirmed the government’s decision not to introduce a supplementary budget, as communicated by the Finance Minister, Dr Mohammed Amin Adam.
He highlighted the government’s intention to explore alternative avenues to enhance revenue while emphasising its commitment to avoiding new taxes.
He indicated that the current tax framework contains significant opportunities that can be effectively leveraged to generate revenue.
“There are a lot of conversations ongoing, but one thing I can say on behalf of my Minister [Dr Mohammed Amin Adam] is that there won’t be new taxes in this mid-year budget. But, going forward, we are looking for all avenues to make sure that we enhance revenue.
“I believe there are a lot of opportunities within the tax system for us to rake in revenue. It’s about improving efficiency. It’s about dealing with leakages in the tax system, it’s about engaging the taxpayers to accept responsibilities. There are leakages, but I don’t want to pre-empt anything,” he said on Channel One TV.
The mid-year budget review is anticipated to be presented in Parliament by the finance minister next month.
Meanwhile, Dr Patrick Asuming, a lecturer of Finance and Economics at the University of Ghana, has advised the government to focus on improving the economy rather than taxing the already overburdened populace.
He explained that until measures are taken to grow the economy, the country will never be able to completely pay off its debt.
“The economy is not growing, and ultimately, we have to find means to increase our revenue collection. Also, the government has to look at its own finances, but when it comes to revenue generation, it is much easier for the government to collect additional revenue when the economy is growing than when it is not.
“In the last three years or so, the economy has not been growing very well, so any attempt to bring new taxes will be a problem”.