Gov’t attacks recalcitrant taxpayers

Finance Minister Seth Terkper says a major problem bedeviling Government’s revenue collection lately is the non-compliance of some taxpayers. Speaking at the launch of a survey on foreign private capital flow yesterday in Accra, Mr Terkper said Government will continue to engage the business sector to address the tax rate issue.

“As collaborators, we hope to continue to strike compromises here and there to ensure that we understand each other and also continue to make progress in improving the business environment in the country.

“Government has many a time been accused of imposing very high taxes on Ghanaian business entities, but it appreciates the impact of high taxes on the competitiveness of businesses in the country.”

He said the capacity of institutions would also be improved to deal with the problem as well as enhance private sector initiatives and development. “This way, the lingering issue of low employment, especially in the private sector will begin to be addressed.”

He stated that Government placed a lot of premium on attracting capital flows into the country, especially flows to the private sector, adding that policies that will ensure macro stability in the short, medium as well as long-term would be pursued.

Terkper said the current level of the fiscal deficit has been a source of concern for many, including the nation’s external partners. He said addressing the structural problem affecting the budget will also enable government to reduce its borrowing requirements and thereby help bring down interest rates and also free up more loanable funds for the private sector.

The Bank of Ghana’s 5th Foreign and Private Capital Flows Survey was conducted in 2012 to update the country’s balance of payments (BOP) and International Investment Position (IIP) statistics.

The survey shows that Ghana continues to attract foreign direct investment mostly into the mining, communications, finance and insurance sectors from mainly the United Kingdom, France, South Africa and Canada.

It revealed that FDI stock recorded an annual growth of 20.7 percent to GH¢20.4 billion in 2011 from GH¢16.9 billion, adding that similarly the stock of portfolio investments increased to about GH¢2 billion in 2011 from a stock position of GH¢1.7 billion in 2010.

Ghana’s net international investment position (IIP) went up to US$18.2 billion in 2011 compared to US$16.4 billion (revised) in 2010 due to net financial inflows. The IIP said by the end of 2011, the value of foreign-owned assets in Ghana exceeded the value of Ghana-owned assets abroad.