Featured
Mohammed Ali
2 minutes read
Ghana’s economic challenges cannot be solved by continuously increasing taxes but rather through fiscal discipline, efficient revenue collection, and prudent resource management, according to the Chairman of the National Economic Dialogue, Dr Ishmael Yamson.
Speaking in an interview on TV3 on Sunday, March 10, 2025, Dr Yamson criticised successive government’s approach of repeatedly introducing new taxes, arguing that a small segment of the population and businesses in the formal sector are being overburdened while many others evade taxes.
“You can’t keep increasing taxes on the same people and expect the economy to grow. We need to be disciplined in how we manage the resources we already have,” he stated.
Dr Yamson blamed excessive government spending and inefficiencies in public institutions as major drains on the economy.
He stressed that no amount of taxation would be enough if state funds continued to be misused.
“The problem is not that we don’t collect enough money. The problem is how we use it. If we were disciplined in spending and plugged all the revenue leakages, we wouldn’t need to keep imposing new taxes,” he said.
He also called for broadening the tax base, arguing that many wealthy individuals and businesses operate outside the formal tax system. He urged authorities to digitise tax collection to reduce human interference and curb corruption.
“There are people in this country making millions but not paying taxes because the system allows it. If we digitised revenue collection, tax evasion would be much harder,” he explained.
Beyond taxation, Dr Yamson stressed the need to create a business-friendly environment that encourages investment and economic growth.
He argued that when businesses thrive, the government naturally generates more revenue without having to introduce new taxes.
“You can’t tax struggling businesses into prosperity. The government must make the economy work so that more people and companies can contribute their fair share,” he advised.
Dr Yamson urged leaders to prioritise long-term economic stability over short-term political gains.
“We don’t need more taxes, we need discipline. If we fail to manage our resources wisely, no amount of taxation will fix this country,” he warned.