Business News Sat, 4 Aug 2018

35% income tax is lazy approach to revenue generation - Mine Workers Union

Ghana Mine Workers Union (GMWU) has called on the Finance Minister to scrape the new tax for persons earning ¢10,000 which started on August 1.

Speaking to Joy Business the General Secretary of the Union, Prince William Ankrah, described governments approach to raising more revenue as a laissez-faire one which he says is overburdening the taxpayer.

“Given the dynamics of the market, we expect that these issues needed more consultations and investigation to make sure that those who will be affected understand the new tax.

"This is because people have already planned their budget and to a very large extent this new tax is going to affect them even if they have to lose a pesewa. Yes, the nation needs money but let’s be careful of not running into the processes of imposing taxes.”

Mr Ankrah further stated that “the tax bracket must be widened as those are the innovative ways to ensure that we rope in more and new taxpayers.

"If we can’t do these things then we indeed are getting lazy by burdening the small taxpayer with more taxes which is not a good thing to do. Therefore debating new taxes is very crucial for the development of the nation.”

Government announced the introduction of new taxes to raise money to develop the economy in its 2018 mid-year budget policy statement.

The Finance Minister Ken Ofori-Atta has said Ghanaians who earn ¢10,000 or more will, henceforth, pay 35% of their salary as personal income tax.

He told parliament during the presentation of the mid-year budget review that government is reviewing the personal income tax categories “to include an additional band of ¢10,000 and above per month at a rate of 35%”.

This was part of the proposed tax measures announced by Mr Ofori-Atta, through which government intends raking in more revenue.

Over the past three years, the Chief Executive Officer of Dalex Finance, Ken Thompson has been urging government in the last three years to introduce new taxes to cater for its expenditure.

He cautions, however, that this should be done if only the government will be prudent with its spending.

Mr Thompson observed that government is currently not investing in capital expenditure that will have the ability to pay for loans acquired to invest in such areas stating that, government will have to take some tough measures and face the reality.

Source: Myjoyonline.com