Accra, Sept. 2, - President Jerry John Rawlings today decried the inadequate tax system and said loopholes for tax avoidance and evasion would be plugged immediately. ''The burden of taxation in this country has always fallen more on the occupational groups least capable of carrying it while those who earn more have largely avoided their tax obligations,'' he said. The President was opening the ''The National Economic Forum'' at the Accra International Conference Centre. The Forum, which is a ''consultative problem solving exercise'', is an attempt at building national consensus on how the economy can be moved forward. It is being organised by the National Development Planning Commission and Private Enterprise Foundation and has brought together the major players in the economy, including the minority parties. President Rawlings said any time the government attempts to widen the tax net, it encounters ''destructive political propaganda aimed at poisoning public opinion to frustrate the effort''. ''We must all agree to put a stop to the politicisation of necessary economic measures designed for effective governance and the promotion of the socio-economic development of this country''. The forum is on the theme ''Achieving National Consensus on Policy Measures and Accelerated Economic Growth within the framework of Ghana - Vision 2020.'' President Rawlings said the practice under which Ministries, Departments and Agencies grant exemptions to individuals, firms and non-governmental organisations for the clearance of customs-dutiable goods has been revoked. ''The whole exemption scheme is to be rationalised on the basis of strict adherence to the constitutional provision under which only Parliament has the right to grant exemptions''. He said offences under the tax laws will be prosecuted and proposals would be submitted to Parliament for a review of import duties and excise duties on a range of products to improve compliance and provide incentives for the private sector. The President announced measures to fight inflation and said the Government has decided that all government accounts are to be transferred from the commercial banks to the Bank of Ghana. President Rawlings recalled a similar forum held in Akosombo in July this year and said the government is implementing some of its recommendations. He said all Ministries, Departments, Agencies and District Assemblies are no longer to enter into open-ended contracts. ''Any contract whose variation exceeds 25 per cent of the contract sum is to be subjected to the laid-down procedure for the re- award of contracts''. Budgetary allocations to all sectors will be for the completion of on-going projects. New projects will only be admitted where they have been included in the Five-Year Development Plan and the Three-Year Rolling Public Investment Programme. The President said there would be a centralised system of purchase of official vehicles. Apart from the expected savings which will result from bulk purchasing, it will also allow for the introduction of a system of trading-in of used government vehicles thereby reducing expenditure on maintenance and running costs. President Rawlings said ceilings are to be placed on expenditure on utilities consumed by government establishments. ''As part of this exercise, functionaries of government who until now enjoy free use of domestic telephones, electricity and water are being given spending limits beyond which the individual will have to pay''. He said the government is introducing new elements into its procurement procedures to allow for greater transparency and a task force will be set up to ensure reduction of waste and duplication. The Task Force will have authority to sweep away bureaucratic ''bottle-necks and road-blocks in the system''. The President also spoke about measures to rejuvenate agriculture and said the Agriculture Development Bank is being assisted to secure additional credit lines to increase its lending capacity. The government will propose to Parliament to reduce from 35 per cent to 20 per cent the tax on income derived from bank lending to agriculture. A number of irrigation projects are to be rehabilitated and their management improved while an inventory of farm lands that are free from litigation is being taken. ''The aim is to create a Land Bank with a view to facilitating access to land by the youth and prospective investors in agriculture,'' President Rawlings said. President Rawlings appealed to participants at the Forum to approach issues objectively. ''We are not here to score political points or engage in verbal gymnastics. We are not interested in arguing over who takes credit for what policy. If there is any credit let us all share it as Ghanaians''. ''Let us leave here with one school of thought and one economic persuasion - Ghana's overriding national interest''. Mr Ishmael Yamson, President of the PEF Council, said the Forum has come at the right time to mobilise the collective efforts of identifiable stakeholders to effect a definite change in the national economic agenda as a certain way of ensuring economic emancipation. He noted that the problems confronting the nation today are not necessarily discussing pertinent topics, but the ability to take bold and decisive initiatives derived from these discussions with zeal and without political sentiments. ''We can move forward within the scope of Vision 2020 to enable us grow so that people can improve on their lives. ''We must also have a clear and defined set of goals, and a high sense of commitment to implement them''. He said Ghana has the ability and the required manpower to rise to achieve the goals set out in Vision 2020 and urged all Ghanaians to put in their maximum to arrive at a concerted formula acceptable to all stakeholders. Mr Yamson pledged the Foundation's support to the forum and all efforts at rejuvenating the economy and expressed the hope that the government is ready to reflect the same commitment to the exercise. Dr Kobena G. Erbynn, Director-General of the NDPC, in welcoming participants, said Ghana's economic fortune has for too long been tied to the production of one primary commodity - cocoa - whose price is determined on the international market. ''It is now time for us to put our act together to engineer some strategy that will propel our economy into the 21st Century. Dr Erbynn said the targets set in the development agenda are achievable. The targets can be achieved ''if we are time conscious, efficient and committed to duty.'' ''This can be done if all (of us) are ready to make the difficult choices without trying to score political points''. The forum is providing a common ground for a wide discussion of ideas from parliamentarians, economic think-tanks, analysts, farmers, chiefs, universities, institutions in the formal and informal sector and research institutions. He called for tolerance of varying views that will emerge at the forum taking into cognisance the fact that the mode of economic growth adopted by the Asian Tigers and Malaysia will come into play. ''We do not have to adopt a wholesale importation of policies of advanced and highly developing countries. ''This must be done with economic rationality. We should borrow ideas but with a touch of Ghanaian culture...and style''.
Accra, Sept. 2, - President Jerry John Rawlings today decried the inadequate tax system and said loopholes for tax avoidance and evasion would be plugged immediately. ''The burden of taxation in this country has always fallen more on the occupational groups least capable of carrying it while those who earn more have largely avoided their tax obligations,'' he said. The President was opening the ''The National Economic Forum'' at the Accra International Conference Centre. The Forum, which is a ''consultative problem solving exercise'', is an attempt at building national consensus on how the economy can be moved forward. It is being organised by the National Development Planning Commission and Private Enterprise Foundation and has brought together the major players in the economy, including the minority parties. President Rawlings said any time the government attempts to widen the tax net, it encounters ''destructive political propaganda aimed at poisoning public opinion to frustrate the effort''. ''We must all agree to put a stop to the politicisation of necessary economic measures designed for effective governance and the promotion of the socio-economic development of this country''. The forum is on the theme ''Achieving National Consensus on Policy Measures and Accelerated Economic Growth within the framework of Ghana - Vision 2020.'' President Rawlings said the practice under which Ministries, Departments and Agencies grant exemptions to individuals, firms and non-governmental organisations for the clearance of customs-dutiable goods has been revoked. ''The whole exemption scheme is to be rationalised on the basis of strict adherence to the constitutional provision under which only Parliament has the right to grant exemptions''. He said offences under the tax laws will be prosecuted and proposals would be submitted to Parliament for a review of import duties and excise duties on a range of products to improve compliance and provide incentives for the private sector. The President announced measures to fight inflation and said the Government has decided that all government accounts are to be transferred from the commercial banks to the Bank of Ghana. President Rawlings recalled a similar forum held in Akosombo in July this year and said the government is implementing some of its recommendations. He said all Ministries, Departments, Agencies and District Assemblies are no longer to enter into open-ended contracts. ''Any contract whose variation exceeds 25 per cent of the contract sum is to be subjected to the laid-down procedure for the re- award of contracts''. Budgetary allocations to all sectors will be for the completion of on-going projects. New projects will only be admitted where they have been included in the Five-Year Development Plan and the Three-Year Rolling Public Investment Programme. The President said there would be a centralised system of purchase of official vehicles. Apart from the expected savings which will result from bulk purchasing, it will also allow for the introduction of a system of trading-in of used government vehicles thereby reducing expenditure on maintenance and running costs. President Rawlings said ceilings are to be placed on expenditure on utilities consumed by government establishments. ''As part of this exercise, functionaries of government who until now enjoy free use of domestic telephones, electricity and water are being given spending limits beyond which the individual will have to pay''. He said the government is introducing new elements into its procurement procedures to allow for greater transparency and a task force will be set up to ensure reduction of waste and duplication. The Task Force will have authority to sweep away bureaucratic ''bottle-necks and road-blocks in the system''. The President also spoke about measures to rejuvenate agriculture and said the Agriculture Development Bank is being assisted to secure additional credit lines to increase its lending capacity. The government will propose to Parliament to reduce from 35 per cent to 20 per cent the tax on income derived from bank lending to agriculture. A number of irrigation projects are to be rehabilitated and their management improved while an inventory of farm lands that are free from litigation is being taken. ''The aim is to create a Land Bank with a view to facilitating access to land by the youth and prospective investors in agriculture,'' President Rawlings said. President Rawlings appealed to participants at the Forum to approach issues objectively. ''We are not here to score political points or engage in verbal gymnastics. We are not interested in arguing over who takes credit for what policy. If there is any credit let us all share it as Ghanaians''. ''Let us leave here with one school of thought and one economic persuasion - Ghana's overriding national interest''. Mr Ishmael Yamson, President of the PEF Council, said the Forum has come at the right time to mobilise the collective efforts of identifiable stakeholders to effect a definite change in the national economic agenda as a certain way of ensuring economic emancipation. He noted that the problems confronting the nation today are not necessarily discussing pertinent topics, but the ability to take bold and decisive initiatives derived from these discussions with zeal and without political sentiments. ''We can move forward within the scope of Vision 2020 to enable us grow so that people can improve on their lives. ''We must also have a clear and defined set of goals, and a high sense of commitment to implement them''. He said Ghana has the ability and the required manpower to rise to achieve the goals set out in Vision 2020 and urged all Ghanaians to put in their maximum to arrive at a concerted formula acceptable to all stakeholders. Mr Yamson pledged the Foundation's support to the forum and all efforts at rejuvenating the economy and expressed the hope that the government is ready to reflect the same commitment to the exercise. Dr Kobena G. Erbynn, Director-General of the NDPC, in welcoming participants, said Ghana's economic fortune has for too long been tied to the production of one primary commodity - cocoa - whose price is determined on the international market. ''It is now time for us to put our act together to engineer some strategy that will propel our economy into the 21st Century. Dr Erbynn said the targets set in the development agenda are achievable. The targets can be achieved ''if we are time conscious, efficient and committed to duty.'' ''This can be done if all (of us) are ready to make the difficult choices without trying to score political points''. The forum is providing a common ground for a wide discussion of ideas from parliamentarians, economic think-tanks, analysts, farmers, chiefs, universities, institutions in the formal and informal sector and research institutions. He called for tolerance of varying views that will emerge at the forum taking into cognisance the fact that the mode of economic growth adopted by the Asian Tigers and Malaysia will come into play. ''We do not have to adopt a wholesale importation of policies of advanced and highly developing countries. ''This must be done with economic rationality. We should borrow ideas but with a touch of Ghanaian culture...and style''.
