I disagree with gov't on tax increment - Kwesi Pratt

Managing Editor of the Insight newspaper has kicked against government’s decision to increase taxes as a way of addressing revenue shortfalls in the country.

Government is hoping to raise some 371 million Ghana cedis from the proposed tax increases and is currently working to place three separate bills before parliament to secure the necessary legal backing for the increases.

The three bills, which are the National Stabilization Levy; Customs and Excise; and Special Import bill will soon be laid before parliament for consideration. This move has, however, been condemned by some economists because they believe it is not the best solution.

Contributing to discussions on Peace FM’s morning show Kokrokoo, Kwesi Pratt said the increment will rather worsen the woes of Ghanaians.

“I disagree with government that the solution to the problem is to increase taxes. I totally disagree with the government’s remedy because in the total analysis government’s remedy will impose further hardship on citizens and probably inhibit the development of the economy…” he asserted.

According to him, the best option for government is to restructure the economy and stimulate growth by "widening the tax net" and reviewing other tax components for multinational companies.

“What government ought to do is to undertake a total restructuring of the economy by widening the tax net, tax holidays for Multinational Corporations need to be reviewed. We should bring it to a halt. We need to also find a way to stimulate growth in the economy, make our people more productive and so on…” he added.