An Economist, Dr. Priscilla Twumasi Baffour, has cautioned the government against hastily removing promised taxes if it could harm national revenue.
She emphasized that while tax cuts may be politically attractive, economic realities must come first to prevent further straining Ghana’s fragile fiscal situation.
Speaking in an interview on an Accra based TV station she said, “It’s a difficult period, and I believe that there is nothing wrong if the government, I mean, the finance minister, comes out to say that we promised X, Y, and Z, but this is the reality it is not possible”.
She noted that the government still has goodwill from Ghanaians and should prioritize economically practical measures rather than rushing to remove multiple taxes.
The economist warned that if revenue shortfalls push the economy further into instability, the consequences could be disastrous.
She, however, admitted that retaining some taxes could have political costs but emphasized that economic stability must take precedence.
“Initially, it would mean some political cost, but I think that the government has a lot of room at the moment, and it should not be hasty in taking out all the taxes that it promised to remove if indeed it’s very difficult to make up for it,” she advised.
