Experts call for accountability to help widen tax net

Tax accountability is a sure way for government to encourage citizens to pay their taxes to contribute towards national development, experts have said.

The experts, who participated in a roundtable discussion organised by the Ghana Center for Democratic Development (CDD-Ghana) on “Taxation and Accountability in Ghana”, called for several reforms including the passage of the Tax Exemptions Bill.

Government in its 2021 budget statement introduced six new levies and increased other existing taxes with the aim of helping to rebuild the country’s public finances.

A CDD Afrobarometer survey in 2019 found that although majority of Ghanaians (72 percent) are willing to pay more in taxes to help finance the country’s development from domestic resources, a similar proportion (70 percent) say they find it “difficult” or “very difficult” getting information about what the government does with taxes it collects.

The roundtable discussion was therefore organised as a platform for policy makers, tax experts and representatives from institutions and associations such as the Ghana Revenue Authority (GRA), the Trades Union Congress (TUC), and the Association of Ghana Industries (AGI) to examine how the country can achieve a clear and effective balance between the concerns for accountability, negative economic impact and essential need for financing development in the COVID era.

The panelists identified lack of accountability, embezzlement of public funds, and abuse of tax exemptions as some of the key factors influencing tax evasion and lack of tax compliance.

Kwaku Kwarteng, Chairman of Parliament’s Finance Committee, stressed the importance of government being transparent and accountable to citizens on how tax revenues are spent.

“It is important for us to hold government and public office holders accountable when it comes to taxation because citizens need to know that the monies they pay to the state by way of taxes are being put to good use,” he said.

Mr. Kwarteng encouraged businesses, individuals and the general public to honour their tax obligations to boost the internally generated revenue needed to address the developmental needs of the country.

Ato Forson, Ranking Member on Parliament’s Finance Committee, said tax increases and introduction of new levies were not the solution to increasing tax revenues.

He recommended the enforcement of tax laws and an urgent review of tax treaties and exemptions, which, according to him, are being abused by some multinational institutions and certain individuals.