Government is taking a lazy economic approach – Farouk Al-Wahab reacts to COVID-19 taxes

International Diplomatic Consultant, Farouk Al-Wahab has described government’s approach to economic recovery amid COVID-19 as a “lazy approach”.

In a Budget Statement presented to parliament last week Friday, Caretaker Minister for Finance, Osei Kyei-Mensah-Bonsu announced that government is proposing new taxes to help the economy recover.

However, Al Wahab in an interview with Happy FM’s Don Prah on the ‘Epa Hoa Daben’ show expressed: “Taxing is a lazy economical approach. A country is there for all time season of planning. A country needs to have a cash stock against emergencies, contingencies or pandemics. If that is the case, we have it that it is an economic recovery plan. Any country that has that plan for its budget is lazy. You cannot tell me the economic recovery plan is to tax”.

He proposed that for a country to take charge of its economy, it needs to put in place “a progressive economic plan”.

He instanced, “Some countries have more COVID-19 cases and yet, these countries can take money from their coffers and give to their citizens, increasing wages, paying rent and catering for immigrants. This was because they saved more.

"If I have to pay the COVID-19 tax for recovery, what was the progressive plan?”.

Among the taxes proposed by the Minister were the sanitation and pollution levy (SPL) Covid-19 Health Levy of 1% on VAT, Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL). Government has stressed that the introduction of these taxes forms part of revenue measures to help the economy recover.