Former Chairman of Parliament’s Committee on Finance, Mark Assibey-Yeboah, has warned government to tread cautiously if it indeed plans to review taxes in the 2021 Budget.
According to him, the introduction of new taxes and tax hikes from the existing rates would require serious government engagement on these fiscal measures.
He stated that the government could decide to cut down on expenditure wherever it finds convenient for governance but stressed increasing revenue is where the challenge would arise.
The former MP for New Juaben South Constituency in the Eastern Region, Speaking on Joy Business news said, “I have heard of tax increases but I am not so sure this is the time to be increasing taxes.”
“Businesses have suffered because of the pandemic and the revenues are not coming as expected. Are we still going to burden the few businesses that are already paying the taxes by increasing say, VAT or petroleum levies or whatever it is,” he queried?
He warned that the government is walking an unchartered territory and still undecided on which way to go bearing in mind the COVID containment measures would still have to be given out.
In a related development, the Ghana Union of Traders Association (GUTA) has urged government to review its tax exemption policy and reduce costs of doing business in the country.
President of GUTA, Dr. Joseph Obeng, indicated levies at the ports reduced marginally from about 19 to 12 but expressed worry that they are going up again.
He called on the Finance Ministry to think through and rather maintain the present tax rates if anything at all as it prepares to present the budget for the 2021 fiscal year.