The Ministry of Finance has disclosed that government will do everything in its power not to overburden Ghanaians with the payment of numerous taxes.
According to the Finance Minister, Dr Mohammed Amin Adam, instead of the introduction of numerous taxes, the government would ‘use the hard way’ to collect revenue from businesses and agencies who evade the payment of taxes and those who do not pay their appropriate taxes.
During a press briefing on Saturday, April 13, after Ghana successfully reached a staff-level agreement with the International Monetary Fund (IMF) on the country’s Extended Credit Facility (ECF) arrangement, the minister of Finance indicated that the suspension of the 15% Value Added Tax (VAT) on electricity consumption by households and the petroleum levies introduced by the government had created a revenue gap of GHS 1.8 billion.
According to him, there was an urgent need to increase revenue in line with the implementation of the US$3 billion loan-support programme from the IMF, but the government was also being careful not to overly burden the taxpayers who are relatively few in the country adding that the government would be resolute in ensuring the effective implementation of revenue mobilization mechanisms announced, both in the 2023 and 2024 budgets, but lacked effective implementation.
He noted, “Now, we’re determined to go out there and collect the taxes from those who have not been paying and those who have been evading taxes…to generate the desired revenue to fill the gap created due to the suspension of the taxes.”
Speaking further, Dr. Amin Adam stated that the Akufo Addo led government was pursuing reforms within the tax administration to ensure that proper assessments were done, and people made to pay the appropriate taxes to the state in the easiest and fastest ways possible.
The Minister added that the intended aggressive revenue mobilisation alone, would not be an ideal situation for the country, therefore, there would be a focus on expenditure rationalisation too.
Dr. Amin Adam said the government felt the plight of Ghanaians, individuals and businesses alike, hence, had to ensure that their living conditions are made better, thus, the suspension of the proposed taxes.
While lauding Ghanaians for the sacrifices made since the implementation of the programme in May 2023, he encouraged them to continue to remain patient and sacrificial.
He said, “Some of the reforms that we’re implementing are biting, but I know that we’ll persevere and lead together, and ensure that the benefits of the fiscal consolidation will bring significant relief to the people of Ghana so that we can be counted once again as one of the fastest growing in the world.”
