Former President John Dramani Mahama has voiced his concerns regarding the current tax policies in Ghana, attributing the economic challenges to the government’s actions and International Monetary Fund (IMF) recommendations.
Speaking to the media on Sunday, July 7th, the NDC flagbearer outlined the impact of increased taxes on businesses and the general populace, promising reforms if re-elected.
According to Mahama, one of the key factors that made Ghana an attractive destination for business investment was its low taxes and levies.
However, he argued that the current administration’s mismanagement has led to economic decline, prompting the IMF to advise raising taxes to 17 percent, with a target of 24 percent by 2028.
“That is why they wanted to put VAT on electricity,” Mahama stated. “We are the only country where [a pandemic] has come and gone, and we are still paying the Covid levy. Even China, where the virus originated, is not collecting this levy any more, and all this is due to the IMF’s recommendations.” He said.
Additionally, Mahama criticized the government’s stance on tax reduction, urging immediate action rather than promises for future relief.
“They are in government. If they can reduce taxes, they should. They shouldn’t say we should vote for them before they will reduce taxes,” he emphasized.
The former president also highlighted discrepancies in VAT payments, pointing out that traders face different VAT rates, leading to confusion and unfair practices.
During a meeting with the Ghana Union of Traders Association (GUTA), Mahama examined the taxes at the port, discovering about 23 different levies and taxes.
He noted that while there are standardized ECOWAS tariffs, some of these levies and port charges are illegal.
“We will rationalize the port taxes and take out what is not necessary. We have to stabilize the currency,” Mahama asserted.
He criticized the Bank of Ghana’s (BOG) practice of changing rates unpredictably, which contributes to financial instability.
“We have to pay up monies due to the instability of the currency. We should change that for everyone to be okay.”
Nonetheless, Mahama promised to address the high tax burden and bring stability to the economy, ensuring fair and consistent tax practices for all traders and businesses.
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