Audio By Carbonatix
With huge expenditure items but unmatched revenues, an economist at the University of Ghana has recommended, government ‘gets hard’ at collecting taxes.
Speaking on JoyNews’ flagship show Newsfile Saturday, Dr. Ebo Turkson mooted the idea requiring citizens to show proof of tax payment before accessing social services.
“We need to move to the next level where if you need a passport, road worthy certificate, you should be able to show that you have filed your taxes,” he said.
The economist was part of a team at the Institute of Social, Statistical and Economic Research (ISSER) of the University of Ghana that prepared a report on the 2018 State of the Ghanaian Economy and the 2019 Mid Year Review.
With Ghana’s debt representing 58% of GDP in 2018, ISSER has expressed worry that the public debt is “fast-approaching unsustainable levels.”
The Akufo-Addo government has lamented the debt-servicing obligations it inherited from the previous administration is holding it back in making critical investments.
The government’s free SHS policy, the biggest budget item, has become the butt of criticisms from experts who fear it is unsustainable to foot the bill of every Senior High School student in public schools.
ISSER has joined the school of thought which wants to see government targeting the policy at students with disadvantageous economic backgrounds.
Asking government to “take a second look” at free SHS, Dr. Ebo Turkson called for an aggressive tax collection strategy.
Government introduced Tax Identification Number (TIN) and required every Ghanaian to have it in order to obtain passports, licenses etc.
“Just possessing a TIN is not enough,” Dr. Turkson said while lauding the move. He wants government to tie access to social services to the filing of taxes.
“We need to get hard at trying to raise enough revenue,” the economist who has called for investments in productive sectors of the economy, said.
The Akufo-Addo government as part of efforts to collect more taxes, began enforcing the Excise Tax Stamp Act in October 2018.
Excise Tax Stamp is affixed on a wide range of consumer goods including cigarettes, alcoholic and non-alcoholic beverages. The Ghana Revenue Authority has been closing down shops and companies found to be selling without the stamp.
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