A tax consultant Nyamekye Kweku Agyei says he does not expect government to either introduce new taxes or increase current tax rates in the 2024 Budget Statement scheduled to be presented today.
Speaking in an interview on Breakfast News yesterday, Mr. Kweku Agyei said introducing new taxes or hiking the existing tax rates will not only worsen the living conditions of Ghanaians but also result in the collapse of businesses and ultimately, the country’s economy.
Instead, he is urging government to consider tightening the tax net to ensure effective revenue mobilisation and take steps to rope others outside the net into it.
“I don’t see the sector that they will be introducing or increasing the taxes on. Then it means you are collapsing the economy. We are in a situation where productivity has been so low, companies are not ploughing back profit to even expand and the taxes are so huge. So if you continue to introduce the taxes, it’s a way of even taking capital out of business owners,” he stated.
Mr. Kweku Agyei further said that he does not expect any significant reduction in taxes due to the IMF programme the country is currently under.
“What they can do is to tighten the net and widen the tax net. They have to tighten to make sure collection is effective. I’ll be a bit surprise to see that there will an introduction of new taxes where we are now. Because when you do that, then it means you are collapsing private businesses”.
His comments come on the back of claims by the Minority in Parliament that government plans to introduce new taxes.
According to Member of Parliament for Yapei-Kusawgu John Jinapor, the government intends to raise an additional 11 billion in revenue through the imposition of new taxes.
He, however, indicated that his side will vehemently oppose any such move.
