Economist, Dr. John Gatsi is lauding government for enforcing the ban on the procurement and distribution of hampers by public institutions this Christmas season.

Government introduced the ban last Christmas as part of efforts to cut down on public spending to address the country’s financial challenges.

In a statement signed by the Communications Minister, Edward Omane Boamah, government has re-emphasized that the ban is still in force.

Dr. Gatsi tells Joy Business even though the action is laudable, the Ghana Revenue Authority (GRA) also needs to enforce the Gift tax this Christmas.

“I think it is in the right direction to prune down expenditure especially at the end of the year. But other corporate entities who work with government institutions throughout the year would send gifts to the leaders of these institutions. We should ask ourselves whether we should be activating this issue of gift tax seriously during this period.”

The Gift tax is 15% payable on gifts worth more than 50 Ghana cedis. 

Dr. Gatsi admits implementation would be difficult because people who have to file for taxes on received gifts do not do so.

He is however hopeful if requisite mechanisms are instituted by the Ghana Revenue Authority, it would be possible to get people pay tax on gifts.