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Business News of Wednesday, 9 September 2020

Source: Happy 98.9FM

It's very difficult for govt to cut taxes – GUTA

Governments of the National democratic Congress (NDC) and New Patriotic Party (NPP) have been slammed for their lagging approach to implementing tax reforms promised in their manifestos over the years.

National Welfare Officer of the Ghana Union of Traders Association (GUTA), Benjamin Yeboah, says governments find it very difficult to cut taxes. This is because that is their primary source of funds for development. Another reason is the fact that the duration of implementing a particular tax policy is overstretched by bureaucratic processes, for instance, having to send the proposal to parliament for debate and subsequent approval.

Speaking on the Happy Morning Show (HMS) with Samuel Eshun, on Wednesday, Mr. Yeboah hinted that GUTA is not entirely impressed with promises.

”GUTA will subject the manifestos of the two parties to pressure-test. Ghanaians should concentrate on analyzing the track records of the two major political parties in virtually every sector since all have had the opportunity to govern this country before. This election should be about track records”, he added.

To increase revenue targets, however, Mr. Yeboah professes governments rather institute strategies that expand the tax net. “Expanding the tax net will allow governments to rope in individuals who hitherto did not pay taxes. This suggestion may help governments meet their revenue targets to support developmental projects.”

Commenting on the NDC party’s promise of cutting taxes as well as exempting some selected SMEs from paying corporate and income taxes, Mr. Yeboah said the reduction of taxes or cancellation of taxes are good. However, he called on governments to put their monies where their mouths are.

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