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Introducing new taxes without growth in GDP counterproductive – Tax expert

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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.

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“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”.

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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.

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“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

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Justin Kodua Frimpong files nomination to seek re-election as NPP General Secretary

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General Secretary of the New Patriotic Party (NPP), Justin Kodua Frimpong, has filed his nomination to contest the position of General Secretary again as the party begins its rebuilding efforts ahead of the 2028 general elections.

He was accompanied by party stalwarts and supporters who were in high spirits, expressing confidence that he is the right person to hold the position.

Speaking after filing his nomination, Mr Kodua Frimpong assured the rank and file of the party that he would not disappoint them.

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“I can assure you that the faith the rank and file of the party have had in me, I will never disappoint them,” he said.

He also pledged to run a clean campaign devoid of personal attacks.

“I can assure you that our internal campaign will be devoid of personal attacks,” he told his fellow contestants and the rank and file of the party as he seeks to retain his position.

His tenure has seen the party through the 2024 general elections, where the NPP lost power to the National Democratic Congress (NDC) after eight years in government.

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The party is currently in a rebuilding phase, with internal elections scheduled to elect new national executives to lead its reorganization towards the 2028 polls.

The General Secretary position is considered one of the most influential in the party’s administrative structure, responsible for the day-to-day running of the party secretariat and implementation of party decisions.

By Edem Mensah-Tsotorme

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UGMC disputes Michael Blackson’s claims over late mother’s treatment

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The University of Ghana Medical Centre (UGMC) has disputed claims made on social media by comedian Michael Blackson concerning the treatment given to his late mother, saying a review found that the allegations did not accurately reflect what happened during her stay at the hospital.

In a statement issued in Accra on August 5, 2026, the management of UGMC expressed condolences to Mr. Blackson and his family over the death of his 83-year-old mother, who died at the facility on July 16, 2026.

The hospital said it had taken the concerns raised by Mr. Blackson seriously and conducted a thorough review in line with its clinical and administrative procedures.

According to the statement, the facts presented by Mr. Blackson on social media contained “numerous inaccuracies” and did not accurately reflect the medical care provided to his mother.

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UGMC explained that she was referred to the facility from another hospital and received treatment there from May 27 to July 16, 2026, a period of about eight weeks.

The hospital stated that it would not release details of her diagnosis, treatment, medical records or other aspects of her care because it had a duty to protect patient confidentiality, even after death.

It said the decision was intended to respect the dignity of the deceased and the privacy of her family.

UGMC further stated that all clinical decisions at the facility are made by qualified healthcare professionals based on medical judgment, established standards of care and the best interests of the patient.

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The statement added that such decisions are made in consultation with authorised family representatives where necessary and that billing and financial procedures are governed by institutional policies and are separate from clinical decision-making.

The hospital noted that it values feedback from patients and their families and considers both positive and negative comments important for improving the quality of care.

Mr. Blackson had earlier used social media to criticise the care his mother received at UGMC, prompting the hospital’s response.

By: Jacob Aggrey

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