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High Tax Exemptions Hurting Ghana’s Economy – Bokpin
Prof Godfred Bokpin, an economist with the University of Ghana Business School has said delays on the part of the government in passing the tax exemption bill into law is creating a major leak in the country’s revenue generation.
According to the Institute of Economic Affairs (IEA), Ghana loses over GHC 5 billion every year through tax exemptions alone.
Speaking on The Asaase Breakfast Show with Kwaku Nhyira-Addo on Monday (7 February) on the impact of ratings and downgrade of Ghana’s economy, Bokpin urged the government to fast-track the passage of the bill to reverse the trend.
“The biggest threat to our revenue mobilisation is tax exemption. In less than 15 years … Ghana has given away about half of its revenue base through exemptions, for me it is the biggest leak in our economic structures,” he pointed out.
“The E-Levy is unfair and regressive, especially when we look at how little exemptions are therein for Ghanaians with the existing tax nets. If we are able to ensure their proper implementation then we will not need the E-Levy,” Bokpin said.
