Associate Professor of Finance at Andrews University, Michigan, USA, Professor Williams Peprah is calling for an effective property tax regime to help boost the tax revenue-to-Gross Domestic Produce ratio.

According to him, implementing this effectively could help offset any revenue shortfalls moving forward.

Speaking in an interview with Joy News, Professor Peprah said the government must focus on enhancing the property tax regime as an alternative revenue source if the Electronic Transaction Levy and COVID-19 related taxes are abolished.

“Regarding the smaller revenue-generating initiatives the previous government attempted such as the property tax, which they failed to implement effectively—there is an opportunity for improvement. If the E-Levy and COVID-related taxes are abolished, the government must focus on enhancing the property tax regime as an alternative revenue source”.

“Studies suggest that property tax alone could contribute around 2% to 3% to our revenue-to-GDP ratio. Implementing this effectively could help offset any revenue shortfalls moving forward. To me, ensuring the property tax regime is enforced and addressing other expenditure adjustments will significantly reduce the deficit we are concerned about”, he advised.

Tax Policies Must Be Business Friendly

Regarding President Mahama’s quest to improve the business environment, the US-based Associate Finance Professor offered some critical solutions.

First, he said the current government must ensure that tax policies, including tax rationalisation, are made more business-friendly

“If the tax administration becomes more accommodating, the business community will likely respond positively. For instance, specific issues like VAT [Value Adde Tax], where taxes are levied on top of other taxes, must be addressed and re-aligned. Such practices should not continue in their current form. By implementing these changes, streamlining tax structures, removing unnecessary burdens, and ensuring a fairer system, the government can encourage the business community to thrive”, he added.

This, in turn, he said, will facilitate the government's goal of establishing a 24-hour economy.

Stable Exchange Rate Regime Needed

He also urged President Mahama to address the currency fluctuation by establishing a stable exchange rate regime.

According to him, the Mahama government is aware of the major challenge facing the economy and this ensuring a stable economy.

He therefore wants the new government to prioritise exchange rate stability first  in its quest to undertake a 24-hour economy.

President Mahama’s inaugural address focused on four pillars.

The first two centered on the economy: economic stability and opening up Ghana for business.

The other two pillars focus on constitutional reforms and accountability and corruption.