Auditing and Accounting firm, KPMG, believes the introduction of new tax measures and other levies in the 2021 budget statement are short term measures to revive the economy.

Doing its analysis on the budget estimates, Senior Partner at KPMG, Anthony Sarpong expressed confidence that even though the taxes may bring some hardship to businesses, government will be quick to withdraw them after a positive pick up in the economy.

Government has introduced some new taxes in the 2021 budget to some targeted areas like sanitation, covid 19 related procurements and road infrastructure.

The development has received some reaction from stakeholders including the Association of Ghana Industries which believes the move will worsen the plight of businesses struggling to recover from the pandemic.

After hours of deliberations on the economic policies, Senior Partner at KPMG, Anthony Sarpong said the new measures must be for the short term growth of the economy.

“I believe that we found ourselves in this situation because of the global pandemic [covid-19] and it is just prudent for drastic measures to be taken or hard decisions for the country to move on from the negative effects and so a short term measure is necessary.”

“I don’t think the new tax measures will travel beyond post covid 19 economic recovery” he said.

Minister of Finance, Ken Ofori-Atta, who joined the conversation virtually has described the move as a shared responsibility for all to contribute in ensuring that uncompleted infrastructure projects are completed.

Economics Lecturer at the University of Ghana, Dr. Priscilla Twumasi Baffuor who was on the panel argued that the new taxes must be invested in profitable infrastructure projects to fasten the growth of the economy post covid-19.

Meanwhile the senior partner, Anthony Sarpong, has revealed that the GH100 billion cedis CARES programme by the government has enough potential to support the growth targets in the 2021 budget.