Okudzeto: Ghana's money is locked up in East Legon

Former President of the Ghana Bar Association, Sam Okudzeto says he is surprised the government is struggling to raise extra revenue when, according to him, there is so much money locked up in the plush East Legon enclave of the capital city.

Speaking at the launch of the 10th anniversary of the Presbyterian University College of Ghana (PUCG) in Accra on Thursday July 25, 2013, Mr. Okudzeto said he had advised one of the finance ministers that the government could raise so much money by focusing and enforcing the tax laws on rich residents of East Legon alone.

“…Go to East Legon, walk around and see all those huge huge huge huge buildings that have sprung up. When were they built? Where did the money come from to build them? Those are the places you have to assess and let them pay the tax,” he counseled.

According to him, it is easier for such plush areas to be taxed than widening the tax net to the disadvantage of the ordinary citizen.

The government recently tweaked the tax net to rake in more revenue.

Among the taxes affected were the communications service tax, environmental protection tax and private universities tax.

Until Parliament's recent amendment of the Internal Revenue Service Act, private Universities enjoyed tax exemption.

However, they are now expected to start paying corporate tax just like any other profit-making firm does.

Mr. Okudzeto who is the Chairman of the PUCG Council said: “If the government is desperate for money”, private universities should not be the source for raking in needed revenue.

He, therefore, said the government should rather venture into rich neighbourhoods in the country to make sure residents there are made to pay the necessary taxes.