Associate Professor of Economics, Charles Godfred Ackah has said that some citizens have accumulated huge sums of profits during the Covid-19 pandemic and current economic crisis.
According to him, the profits are “supernormal”.
Speaking on JoyNews’ Super Morning Show, the University of Ghana lecturer said the accumulation of such profits intensifies inequality in the economy.
”All over the world, during the covid and after the covid, there’s inequality. Some people and some companies have benefited from the crisis and from the pandemic and have made super-normal profits whereas other businesses have collapsed and other people have lost their job and some people are making losses,” he said.
Prof. Ackah explained that some measures adopted in the 2023 budget to tackle fiscal challenges heckling the economy are not “really acceptable.”
He proffered that the government should have targeted taxing “individuals who have benefited supernormally” from the crisis “and use it to finance debt and to support social protection.”
According to the economist, “any responsible government would be concerned about such drift inequality and will use physical policy to level up.”
He said although the government had raised the rate of personal income tax to about 30 per cent, he wished an additional rate of about 40 per cent would be raised to target the super-rich.
Prof. Ackah also lamented the ineffectiveness of successive governments to generate domestic resources.
“We have not had a government that is developmental enough since the last 68 years or so that are innovative in thinking of how to raise domestic resources and to invest that in critical economic infrastructure,” he added.
After and a prolonged year of inflation hikes and cedi depreciation which some experts have characterized as factors hampering the country’s progress in seeking an IMF bailout, the Finance Minister has just reached a Staff-Level Agreement with the IMF.
In spite of securing a Staff-Level Agreement, Minority in Parliament has warned that the approval of the deal may be jeopardized amidst organizations’ resistance to government’s domestic debt restructuring programme.
Latest Stories
-
World Safety Day: Zoomlion addresses the impact of climate change on occupational safety
19 mins -
We’ve saved $57.9m from procurement of BVDs, BVRs – EC insists
27 mins -
Catholics hail Bawumia for religious diversity after visit to Pope Francis
32 mins -
We’ll address all internal issues before December polls – Stephen Ntim assures NPP
36 mins -
NPA boss re-elected as President of African Refiners and Distributors Association
49 mins -
Today’s front pages: Monday, April 29, 2024
57 mins -
Ejisu by-election: I’m not an NDC member; address internal issues bothering your members – Aduomi to NPP
1 hour -
Ghana among top African countries with highest Schengen Visa rejection rates
1 hour -
‘We have missed him for months’ – Arteta on Thomas Partey
1 hour -
Togo heads to polls amid tensions over law reform
1 hour -
Nigerians excited over Harry and Meghan’s planned visit
1 hour -
‘We are sorry but we need to stay calm’ – Andre Ayew on Black Stars recent form
2 hours -
Election 2024: Bawumia dares Mahama to two-man debate
2 hours -
Bawumia is a man of integrity and discipline unlike Mahama – Miracles Aboagye
2 hours -
Ejisu by-election: NDC is sponsoring Aduomi; don’t vote for him – Bawumia to NPP supporters
2 hours