Economist Professor Godfred Bokpin has called the general public to prepare for an increase in taxes following IMF’s approval of Ghana’s request for a bailout.
Speaking to JoyNews’ Evans Mensah on Wednesday, he explained that this is because the government will have to meet a tax to GDP ratio during the review of the programme.
“There are targets that we have to meet every six months of the program review. Part of the target may include increasing our tax-to-GDP ratio to let’s say 18%. The strategy in increasing the tax revenue could negatively impact businesses if we don't adopt optimal tax handles,” Prof Bokpin said.
This comes after the International Monetary Fund (IMF) finally approved Ghana’s Programme request seeking for a $3 billion Balance of Payment support to stabilize the economy.
In a press release by the IMF, they indicated that this decision will enable an immediate disbursement of about US$600 million to Ghana.
“The program is based on the government’s Post COVID-19 Program for Economic Growth (PC-PEG), which aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth,” parts of the statement read.
Meanwhile, Prof Bokpin stated that Ghana needs strict governance and productivity-enhancing reforms to complement gains from the International Monetary Fund.
He contends that government has a lot of work to do, in ensuring a robust macroeconomic stability in the short to medium term as the country awaits the first tranche of the $3 billion facility from the IMF.
“What then is important is that how do we complement gains from the IMF, short term usually, by the necessary governance productivity and enhancing reforms that Ghana needs to do?”
Latest Stories
-
Hindsight: Dreams fairytale run proved one thing; it is possible
29 mins -
God makes rulers, not you; you can’t choose your successor – Mahama to Akufo-Addo
1 hour -
Contributors own SSNIT, they must decide who becomes its Director-General – Austin Gamey
2 hours -
Move away from theory-based learning towards practical learning approaches – AUCC President to students
2 hours -
Haaland scores as Manchester City beat Nottingham Forest
3 hours -
Villas-Boas elected Porto president
4 hours -
Situation on frontline has worsened, Ukraine army chief says
4 hours -
US doctor describes witnessing starvation in northern Gaza
4 hours -
CAFCC: RS Berkane make final after USM Alger refused to play 2nd leg over Moroccans’ jersey
4 hours -
Elon Musk in China to discuss enabling full self driving
4 hours -
PSG clinch Ligue 1 title after Lyon’s win over Monaco
6 hours -
Guinness Ghana sets the pace at Ghana Beverage Awards with six awards
6 hours -
Burkina Faso suspends BBC, VOA radio broadcasts over killings coverage
7 hours -
Nicole Kidman honoured with AFI Life Achievement Award
7 hours -
Brassier scores winner for Brest as they edge Rennes to secure European football
7 hours