Cut down expenditure and increase tax – Ken Thompson tells government

Chief Executive Office of Dalex Finance, Ken Kwamena Thompson is urging Finance Minister Ken Ofori-Atta to broaden government’s revenue base by increasing the value or number of taxes paid by Ghanaians.

According to the Chartered Accountant, expanding government’s revenue generation is the only way to meeting the several capital intensive projects government is embarking on or intends to execute.

Speaking at “CIMG Evening with Ken Thompson” held at Alisa Hotel in Accra, Mr. Thompson bemoaned the dwindling revenue of the country, charging government to take drastic measures to solve the financial challenges it's faced with.

He observes that, “We spent almost 100% of all our revenue including grants on three line items as follows: compensation to employees, interest payments, and, statutory payments, example GETFund, District Assemblies Common Fund, and NHIS. Government needs more money so it must increase tax."

Mr. Thompson, however, failed to address the distress a possible increment in taxes will cause to industries, especially infant ones.

When asked how small business can thrive in high tax regime, Mr. Thompson said, “It’s a hard choice government should make. Either you increase taxes to increase revenue or cut down expenses or do both.”

Mr. Thompson also painted a gloomy picture of Ghana’s economy describing it as weak, broke, and heading for disaster.

The CIMG program which hosted Ken Thompson was organised to highlight the challenges confronting Ghana’s economy and propose possible solutions to the effect.