The Minister of Information, Mr Kojo Oppong Nkrumah, has signaled that government is likely to introduce new taxes in the 2022 budget to help spur up revenue inflows to finance developmental projects in the country.
According to the Member of Parliament for the Ofoase-Ayirebi constituency in the Eastern Region, it is paramount “new broad-based taxes” are introduced in the 2022 budget because of the demand for public services like the construction of roads and hospitals.
“Obviously, we would need to introduce some new broad-based taxes if we are to rake in the needed revenues to deliver what our people desire”.
“New taxes may have to be imposed on items that exclude the poor and do not have a high cascading effect so that it does not increase the difficulties that the Ghanaian is going through,” he said in an interview with journalists in Accra on Wednesday, November 10, 2021.
As the incumbent cog up for the presentation of the 2022 Budget Statement and Economic Policy in Parliamenton on Wednesday, November 17, there is an ongoing national dialogue on how the government should strategize its revenue mobilisation in order to close the gaping fiscal deficit in its books.
With the diminishing revenue streams attributable to the slow pace in business activities occasioned by the Covid-19 pandemic, Ghana is lagging behind most of its neighboring countries within the West African sub-region as far as the tax to Gross Domestic Product (GDP) ratio is concerned.
While the country is preforming below 15%, countries in the sub-region such as Cote d’Ivoire and Nigeria are hovering around an average of 18%, raising questions about whether or not increasing taxes in the 2022 budget will help cushion the government spur up revenue inflows to finance development projects.
But the Minister of Information says the government has no alternative to find pragmatic approach to mobilise funds through taxes to fund the demands for roads, schools, hospitals, and many others.