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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
The spokesperson for Dr. Bawumia, Dennis Miracles Aboagye, has criticised the implementation of the NDC government’s No Fee Stress policy, arguing that the programme has failed to deliver on its core promise.
According to him on Starr fm, the policy, which was introduced to ensure stress free payment of fees for level 100 tertiary students, has rather turned into what he described as post stress support.
He explained that students are required to pay their fees first before applying for reimbursement, a situation he believes defeats the purpose of the policy.
He questioned claims by government officials that the policy has been successful and that citizens are happy.
In his view, such claims do not reflect the lived realities of many Ghanaians. He stressed that while some people may appear satisfied, many others continue to struggle.
Dennis Miracles Aboagye pointed to the situation of trained teachers and nurses who have been picketing for nearly six months, demanding employment.
He noted that government responses suggesting it cannot accommodate all of them contradict claims of economic stability.
He further argued that economic indicators such as a stable currency mean little to people who are unable to secure jobs or access promised support.
He observed that telling an unemployed teacher or a struggling student that the cedi has strengthened does not address their immediate challenges.
On the issue of tertiary education, he maintained that no level 100 student benefited from stress free fees in 2025, despite the policy being announced.
He added that in 2026, students have already reported to school without receiving the promised support.
He insisted that asking students to pay fees first and seek reimbursement later amounts to support after hardship, not stress free education.
According to him, this approach goes against what was promised during the policy announcement.
Dennis Miracles Aboagye questioned why a government that presents the economy as strong is unable to fulfil what he described as simple and clear promises.
He added that there is a fundamental problem with the way the economy is being managed and indicated that he is prepared to explain his position further.
By: Jacob Aggrey
Dancehall musician Shatta Wale has issued a strong public statement calling for an end to what he describes as continuous attacks on his brand, following an apology from media commentator Awal Mohammed.
In the statement, Shatta Wale acknowledged the apology but stressed that persistent criticism and what he sees as deliberate attempts to damage his image must stop.
He noted that for many years, he has spoken for the streets, the youth, and people who feel ignored by society, while also promoting Ghana on the global stage and creating jobs through his work.
He expressed concern that some media personalities, commentators, and influential figures continue to target his name unfairly.
According to him, the issue goes beyond music and touches on respect, fairness, and national maturity.
The musician warned that continued disrespect toward voices that represent ordinary people could have wider consequences.
He emphasised that the Shatta Movement remains strong and organized, and that the patience of the masses should not be taken for granted.
He added that if systems continue to fail the people, they have the ability to organize politically through numbers and truth, not violence or hate.
Shatta Wale clarified that his message was not a threat but a reminder of reality, stressing that attacking a symbol that represents millions of people can have social, cultural, and democratic effects.
He called for respect, fairness, and unity, saying the voice of the people will always rise.
The statement comes after Awal Mohammed recently described Shatta Wale fans during a public discussion as junkies.
The comments triggered backlash from fans of the musician, prompting Awal to later issue an apology.
By: Jacob Aggrey
