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Intensifying taxation measures at this time is not a clever decision - Otchere-Darko

Gabby 1 622x405 1 Gabby Asare Otchere-Darko, a leading member of the New Patriotic Party

Mon, 27 Jun 2022 Source: www.ghanaweb.com

Ghana's revenue to GDP is low, Gabby

Our economy is growing faster than most countries around the world, Otchere-Darko

Very soon we may have to borrow to pay wages, Gabby


A leading member of the governing New Patriotic Party (NPP), Gabby Otchere has stated that introducing more taxation measures by any government while the world is experiencing an economic turmoil is not a wise decision.

Gabby notes that Ghana’s revenue to GDP ratio is currently lower than most countries putting Ghana at a higher risk of harsh economic conditions as compared to other countries.

According to him, an IMF programme will impose more hardships on the economy due to the conditions with which they come.

In a series of tweets on Monday, June 27, 2022, Gabby said, “Yes, our revenue to GDP ratio is among the lowest in the world (even in Africa!); but with the current global hardships, and the cost of living rising everywhere in the world, a decision by any govt to intensify taxation measures, especially for workers may not be too clever.”

“Ghana has no food crisis, enough food from our farms, yet food prices have shot up 3-4 times more in our cities, far & over the above rising cost of transportation. To make matters worse, global food insecurity is worsening as inflation, from challenges with supply chain, worsens…”

“Our economy is growing faster than most countries around the world. But that alone can’t save us as confidence in our ability to service our debts is lowering. We can’t continue to use all the little revenues raised to pay our debts. Very soon we may have to borrow to pay wages!"

Meanwhile, the government had earlier stated that the electronic transfer levy will rake in revenue that will help the country to achieve its revenue mobilization target.

The government had earlier noted that going to the IMF was not an option for the country.

TWI NEWS

SSD/MA

Source: www.ghanaweb.com
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