Target IGFs, not VAT – Economist to government

Economist Gideon Amissah, has asked the Government of Ghana to re-direct its focus towards internally generated funds (IGF) within the various Ministries, Departments and Agencies (MDAs) as well as state-owned institutions for money to manage the economy rather than hiking taxes.

According to him, imposing more taxes on Ghanaians will further aggravate the economic conditions they are grappling with.

Indications are that the government is likely to increase the Value Added Tax (VAT) from the 17.5 per cent to about 25 per cent in the mid-year budget statement to be presented to Parliament by Finance Minister, Ken Ofori-Atta Thursday, 19 July.

Speaking in an interview with Accra News’ Agyen Barima on Tuesday, 17 July, Mr Amissah said: “We are all expecting that the government will increase the VAT in the mid-year budget statement although there has not been any official communication to that effect.

“It appears over the years, the easiest way governments have adopted to get money is through taxing the people, but that has not helped.

“I want the government to look at the Internally Generated Funds (IGF) within the various Ministries, Departments and Agencies as well as state-owned institutions for moneys to manage the economy, we should not be taxing the people the more.”

“The economy should be built on production, not taxation,” he added.