Economist, Professor Godfred Bokpin says the government chose the ‘lazy man's approach’ by increasing the Value Added Tax (VAT) rate.
According to the lecturer, the 2.5 per cent increment will only burden the few citizens who have in the past paid the levy.
Prof Bokpin believes that government should have instead reviewed the implementation of the tax policy to ensure that more citizens paid the tax.
This move, he explained, will assist government to “generate much revenue from VAT without increasing the rate.”
“If you look at our revenue generation from VAT it is not that the rate hasn’t been high, it is about inefficiency. If you look at the same tax handle in other countries, they are doing about 60% and we are doing 44% so this shows that there is some inefficiency somewhere.
“So we need to focus on compliance and efficiency underpinned by administrative reforms and deployment of digitisation. But we decided to go for the lazy man's approach of just increasing the rate to burden the faithful few,” he said on Wednesday.
Finance Minister Ken Ofori-Atta announced government's decision to increase VAT when he presented the 2023 budget on November 24.
Ken Ofori-Atta said the review is to directly support road construction projects and the digitisation agenda.
However, speaking on Joy FM’s Super Morning Show, Mr Bokpin insisted that high taxation will fuel inequality in the country.
“Even though everybody will be paying, it will affect the poor compared to the rich. So apart from the fact that it will affect growth, you won’t also do that if your goal is to promote inclusivity and greater social progression.”
Latest Stories
-
Smart Procurement: Using AI to combat fraud and boost efficiency in Ghana’s public spending
1 minute -
Lions Club commissions modern Diabetes Clinic and Emergency Ward for Suntreso Government Hospital
7 minutes -
Asutifi North fire officer urges strict compliance with traffic rules to save lives
8 minutes -
Telecel Ghana celebrates sportsmanship and Heritage at 68th Asantehene Golf Open
17 minutes -
U.S. and Israeli Strikes on Iran: A racist, colonialist assault on sovereignty
18 minutes -
Scientists make case for intercropping amidst climate change impacts
19 minutes -
Government urged to boost TVET to reduce unemployment
23 minutes -
Leading NPP member proposes revision of requirements for higher party roles
28 minutes -
Embedding Ethical AI in Public Procurement: Ghana’s path to trustworthy automation in E-governance
31 minutes -
Seth Terkper to launch book on Ghana’s VAT journey and lessons for Africa
33 minutes -
The silence around Nana Pooley’s case: When justice sleeps, society suffers
34 minutes -
UTAG president challenges Chinese Ambassador over galamsey remarks
35 minutes -
The Escalating Israel-Iran War: A new threat to global trade
44 minutes -
Seven killed in Kyiv in new Russian aerial attack
48 minutes -
Hearts’ $70,000 transfer saga with New Edubiase is being resolved – Opare Addo
59 minutes