• GIPC CEO underscores the monumental role taxes play for government’s developmental goals
• Yofi Grant says tax systems face a lot of hurdles in most developing countries and Ghana is no exception
• Government is faced with very difficult options of raising funds to meet its obligations under the budgetary demands
Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Yofi Grant has stated that the hesitant attitude of Ghanaians when it comes to the payment of taxes is hindering government’s infrastructure and development drive.
According to him, the construction of roads, schools, hospitals and other developmental projects can only come to fruition if Ghanaians commit to paying their taxes.
Yofi Grant furthered that government’s inability to collect taxes has led to inadequacy in revenue generation. This, he said, affects the economic growth of the country.
“Indeed, taxes play a monumental role for government’s developmental goals in transforming societies..the only true business of government is to ensure that first, they create the environment for growth and then collect the taxes. And through taxes, revenues are generated to meet budgetary demands including financing government and public projects as well as making the business environment conducive for economic growth,” he said at the CEO’s breakfast meeting held in Accra on Tuesday, May 25, 2021.
“Tax systems face a lot of hurdles in most developing countries and Ghana is no exception…First of all, our tax to GDP is comparatively low so obviously, we are not collecting enough taxes and because we are not collecting enough taxes, and government is faced with very difficult options of raising finance to meet its obligations under the budgetary demands,” he added.
He made these remarks while speaking on the theme, “Understanding Ghana’s taxes and exemptions regime towards increasing investor confidence in the business environment.”