A senior lecturer at the University of Ghana Business School, Prof Godfred Bokpin, has urged the government to speed up the passage of the tax exemptions bill which it laid in parliament in 2021.
According to him, the delay in the passage of the bill is making the country lose substantial amounts of tax revenues.
In a report by Asaase radio, Prof Bokpin said tax exemptions are the main challenge government has in its domestic revenue mobilisation efforts.Â
“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 was quoted by asaaseradio.com.
The senior lecturer added that the government, rather than being keen on implementing the E-Levy, should properly implement tax exemptions since it would yield better results.
“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,” Prof Bokpin said.
Prof Bokpin’s comment comes on the back of the World Bank Country Director, Pierre Frank Laporte, saying Ghana had too many tax exemptions and a report by the Institute of Economic Affairs (IEA) which showed that Ghana loses over GH¢5 billion every year through tax exemptions alone.
The Tax Exemption bill seeks to streamline Ghana’s tax exemption regime to ensure that only organisations whose production is important to the countries development are exempted from paying certain taxes.
Source: www.ghanaweb.com