Former Auditor General Daniel Yao Domelevo has criticized Ghana’s tax system, likening it to theft. He argues that the current tax framework places undue burdens on taxpayers, subjecting them to continuous taxation even after fulfilling their obligations such as income tax and earnings taxes.
In an interview on JoyNews on Monday, April 8, 2024, Domelevo emphasized the urgent need to address these issues to alleviate the ongoing hardships faced by ordinary taxpayers. He described the situation as ‘daylight robbery,’ urging immediate attention and resolution.
Domelevo highlighted the cycle of taxation where income is taxed, followed by additional taxes on purchases, and even further taxation on the items bought, labeling it as unjust.
President Nana Addo Dankwa Akufo-Addo’s administration has aimed to shift Ghana from a taxation-focused economy to one that prioritizes production. This strategic shift, outlined by Nana Addo in 2017, encourages the private sector to capitalize on new opportunities for growth.
Former Finance Minister Ken Ofori-Atta emphasized the careful consideration taken in implementing and adjusting taxes outlined in the 2021 budget. This approach aligns with the government’s overarching objective of transitioning the economy to prioritize productivity.
However, critics have raised concerns about what they perceive as a deviation from this policy direction, especially with the introduction of new taxes and increases in existing levies, such as the COVID-19 Health Levy, VAT Flat Rate, and NHIS Levy.
The budget also proposed additional levies on petrol and diesel under the Energy Sector Levies Act, aiming to generate extra revenue to cover excess capacity charges from Power Purchase Agreements.
Ofori-Atta clarified that these fiscal measures are crucial to address anticipated fiscal challenges, ensuring financial stability and providing liquidity for entrepreneurs and businesses to drive economic growth.
