Chartered Economist, Emmanuel Amoah-Darkwah says the tax exemption policy put in place by the government to attract foreign investment is costing the country a lot of money.
According to him, Ghana as a country has all it takes to attract foreign investment and he does not understand why government keeps giving huge tax exemptions to foreign businesses. “High rates of tax exemptions are costing us so much. I think Ghana has all it takes to attract foreign investments and we don’t need to lose money through tax exemptions”.
He noted that if these tax exemptions are reduced, the state can gain enough revenue to support the country in its efforts to grow the economy.
Speaking in an interview on the Happy Morning Show aired on e.TV Ghana and Happy98.9FM, Emmanuel reiterated, “it is true this reduction in tax exemptions can help us rake in revenue to help the country grow. We have the political stability, peace and everything else to attract businesses without necessarily giving them huge tax exemptions”.
He believes this strategy will increase revenue generated by government and reduce the burden on tax suffered by the populace. “That way, the focus will not be on taxing consumable only”.
“We should cease giving huge tax exemptions in the name of attracting foreign investment. This is not entirely right”, he added.
In a Budget Statement presented to parliament, Caretaker Minister for Finance, Osei Kyei Mensah Bonsu announced that Government is proposing new taxes to help the economy recover.
Among the taxes proposed by the Minister were the sanitation and pollution levy (SPL) Covid-19 Health Levy of 1% on VAT, Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL). Government has stressed that the introduction of these taxes forms part of revenue measures to help the economy recover.
By: Joel Sanco