Government has been urged to reconsider the new taxes introduced in the 2021 Budget targeted at shoring up revenue to meet expenditure and also reduce the financing gap.
According to Business School Lecturer and Chartered Accountant, Dr. Daniel Seddoh, the challenges with the fiscal economy is due to the unnecessary expenditure and wastage in the system.
Government introduced six new taxes including the 5% Financial Sector Recovery Levy, Increment in Special Petroleum Levy and in VAT Flat Rate Scheme. But Dr. Seddoh who is also a former Chief Executive of the National Pensions Regulatory Authority tells Joy Business the way to go with economic recovery is to focus on production to generate employment.
“Unfortunately, there seems to be a lot of taxes that will not facilitate the kick start we are looking for. And it t will be good to have a rethink about some of those taxes, and make it better for people to get employed and for people to consume, that is giving them disposable income to be able to purchase. It is only when there are purchasing, we can create the demand for the other activities to be generated; and that is when we can kick-start the economy again.”
“The reality is that we’ve hit a bad patch as a people and structurally we have a mechanism that is not functioning. It’s not about NPP being in government but that is what we find ourselves, and if we can dismantle the structures and shift into more production, get people to work and try to be efficient in our expenses”, he emphasized.
“I think that our expenses is much of the problem than the revenue”, Dr. Seddoh explained.
He continued saying “when workers lose jobs, they pay less taxes and when Companies scales down or are making losses, corporate income tax is lost.”
He therefore wants a deliberate expansionary fiscal policy to drive economic growth as job creation gives more people money to spend which boosts growth.
Taxes in 2021 Budget
- Tax on betting/gaming
- Covid-19 Health Levy of 1% on VAT Flat Rate Scheme and a 1% on National Health Insurance Levy (NHIL)
- Energy Sector Recovery Levy of 20 pesewas per litre on fuel.
- Review of road tolls
- Sanitation and Pollution levy
- Financial sector cleanup levy
Tax exemption
- Suspension of quarterly vehicle income tax during the third and fourth quarters of the year for operators of commercial public transport
- Tax rebate of 30% on the income tax due for companies in hotels and restaurants, education, arts and entertainment, and travel and tours for the second, third and fourth quarters of 2021.
- Suspension of income tax stamp system for small business
- Extension of waivers of interest on accumulated tax arrears as
Latest Stories
- Hohoe EP SHS appeals to government for support over infrastructure deficit
12 hours - Use Right to Information law to hold duty bearers accountable – MFWA
12 hours - Cecil Dudley Mends wins 2 top awards at 2nd National Brands Innovation Awards
12 hours - Chelsea clinch 4th successive WSL title with win over Reading
12 hours - Liverpool legend John Barnes leads Standard Chartered Ghana’s football clinic in Accra
13 hours - Luton Town gain Premier League promotion after penalties win over Coventry
14 hours - Erling Haaland wins Premier League Player and Young Player of the Season awards
14 hours - Ghana Reads Initiative enlightens young boys and girls about menstrual hygiene
14 hours - Bayern will 11th consecutive Bundesliga title as Dortmund slip on final day
14 hours - We’ll replace textbooks with laptops in SHS this year – Bawumia
15 hours - Former Hearts of Oak legend Thomas Quaye dead
15 hours - WAFU B Women’s U20 Cup of Nations: Maafia Nyame scores brace as Ghana book semifinal spot
15 hours - Ko-Jo Cue’s ‘For My Brothers’: A timeless classic that hits home
15 hours - Yaw Dabo mistaken for child, served crayons and kids’ meal on flight
17 hours - I like Nana Konadu because she always defends underprivileged children – Osafo-Maafo
17 hours