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Introducing new taxes without growth in GDP counterproductive – Tax expert
The President of the Chartered Institute of Taxation Ghana, George Kwatia, has advised government to close the tax gap by investing in existing tax laws rather than introducing new levies.
According to him, the introduction of new taxes and increases in levies without a corresponding increase in the country’s Gross Domestic Product is counter-productive.
Speaking on a Joy Business discussion themed, “Ghana’s High Taxes; the causes and finding remedies”, Mr. Kwatia said a cursory look at the budget shows that shortfalls in projected revenue could be blamed on increased taxes when economic growth is low.
According to him, increasing and introducing new taxes without an assessment of growth projection will always create a gap that may lead to revenue gaps.
“If you look at total tax revenue, I have mentioned that in the revised one for 2023, government is only looking at ¢108 billion, while we have a tax gap of about ¢55 billion to ¢70 billion”, he said.
Mr. Kwatia explained that new taxes do not necessarily guarantee an increase in taxes particularly when economic activities are not encouraging in the private sector.
Providing some recommendations, he called for investments in existing taxes to close the gap between formal workers who pay majority of taxes and players in the informal economy.
“If you really are a country that wants to invest and make sure that you will get the right taxes, let me remind you it is not about more taxes, but is rather about investments into making sure that we close the tax”.
He maintained that effectively closing the tax gap will not only improve revenue collection but will strengthen the tax administration system.
Speaking on the same show, Economist at the Institute of Statistical Social and Economic Research (ISSER), Prof. Charles Ackah said government must find a better way of taxing the informal economy where much income is generated but unaccounted for.
Citing an example, Prof. Ackah revealed that there are more workers in the informal sector earning more than university lecturers, and yet pay no income taxes.
Such a development, he said is a disincentive to the few in the formal economy who pay taxes to the government.
“There are barbers in Ghana who earn more than ¢5,000 a month and yet they are not taxed. Compare that to a nurse or a teacher who earn less than that but is taxed. How can the system tax a cleaner at the university who earns about ¢800 and ignore a barber, a mechanic and all the informal workers who earn more”, he said.
Source:Myjoyonline.com
Massive celebrations were recorded countrywide as the Black Stars opened their 2026 World Cup campaign with a 1-0 victory over Panama in Toronto on Wednesday.
Midfielder Caleb Yirenkyi scored the only goal of the match late in the game as he shot in a decent cross from substitute Brandon Asante.
The win gave Ghana a positive start in the competition, placing them in second position behind England, also with three points but with a superior goal aggregate.
After the final whistle, the streets and other viewing centres were turned into partying grounds as fans, mostly clad in the team’s paraphernalia, danced to several World Cup-themed music.
Others blew the vuvuzelas in joyous mood with others putting up a spirited ‘jama’ session.
Former New Patriotic Party (NPP) parliamentary candidate for the Adentan Constituency, Akosua Manu, has urged party members to move away from what she describes as an “entitlement mentality” and focus on unity, sacrifice and hard work as the party prepares for the 2028 general election.
In a statement titled “Is Loyalty a Queue?”, and posted on facebook, Ms. Manu argued that loyalty to the NPP should not be judged by how long a person has been in the party but by their contributions and commitment to its growth.
According to her, the NPP’s history shows that many of its leaders faced significant opposition from within the party before eventually leading it to electoral success.
She cited former President John Agyekum Kufuor as an example, saying he had to overcome resistance from influential figures within the party before winning power for the NPP in 2000.
Ms. Manu noted that after the party lost power in 2008, former President Kufuor faced criticism and accusations from some party members.
However, she said supporters eventually put their differences aside and worked together to rebuild the party.
She pointed to the experience of former President Nana Addo Dankwa Akufo-Addo, who, according to her, faced opposition from some factions within the NPP despite his long service to the party.
“His trials were ten times what Kufuor endured,” she stated, adding that Akufo-Addo eventually overcame the challenges and became President of Ghana.
Turning to the NPP’s current flagbearer, Dr. Mahamudu Bawumia, Ms. Manu said he also faced resistance from different groups within the party while seeking leadership.
She praised Dr. Bawumia for contributing to policy-based political discussions in Ghana and for remaining composed following the NPP’s defeat in the 2024 elections.
According to her, party members must now rally behind him in the same way they supported former Presidents Kufuor and Akufo-Addo.
Ms. Manu, however, warned that internal divisions and a sense of entitlement remain major threats to the party’s future.
She argued that some party members place too much emphasis on how long individuals have belonged to the NPP rather than on their contributions and capabilities.
“This entitlement does not question impact. It does not ask what you sacrificed or what you built. It asks only how long have you been here,” she said.
The former parliamentary candidate cautioned that such attitudes could discourage committed members and prevent the party from selecting the best people for leadership positions.
She further called on the party’s incoming national executives to strengthen the NPP’s core values of sacrifice, honesty, integrity and dedication to national development.
Ms. Manu addressed the concerns of young party supporters, many of whom she said became discouraged following the NPP’s electoral defeat in 2024.
According to her, many young people remain eager to see the party return to power but are unwilling to support internal conflicts driven by personal ambitions.
She urged party elders to place the interests of the NPP above their individual goals and to demonstrate leadership that attracts rather than alienates members.
“The NPP is bigger than any one of us. It always has been. Our collective responsibility is to act like it,” she stated.
By: Jacob Aggrey
