Former Auditor-General of Ghana, Daniel Yaw Domelevo, has sharply criticized the government’s economic policies, particularly regarding taxation and their impact on ordinary citizens.
In an interview with Berla Mundi on Ghana Decides on TV3, Domelevo raised concerns over the government’s shift from a focus on production to increased taxation, questioning the effectiveness of this approach in achieving meaningful economic growth.
Domelevo’s comments come in response to Vice President Dr. Mahamudu Bawumia’s earlier promise to transition the country’s economic focus from taxation to production. While the Vice President had argued that this shift would boost economic growth, Domelevo expressed skepticism, pointing out that recent tax policies seem to be doing more harm than good, especially to the average Ghanaian.
A key point of criticism from Domelevo was the government’s practice of imposing taxes on electronic payments, such as mobile money transfers and digital transactions. “The issue is that when you pay via electronic platforms, you are taxed on your transaction. But even the payment you make includes tax for the government. So, in paying tax, you pay tax again,” he explained. Domelevo stressed that this double taxation burdens consumers and exacerbates economic difficulties for ordinary Ghanaians.
Domelevo also questioned the government’s Domestic Debt Exchange (DDE) program, which he claimed has unfairly deprived Ghanaians of their savings. He described the use of long-term savings, like bonds, through the DDE as “robbing the people,” lamenting that some citizens have lost access to their funds entirely. “Some have died and have not had access to their savings. This is their sweat,” he stated. He likened the situation to Zimbabwe’s past economic crisis, where the government confiscated citizens’ savings, warning that Ghana could face a similar fate if the practice continues.
Drawing from his own experiences during Zimbabwe’s economic turmoil, where he and Bawumia witnessed the confiscation of domestic savings, Domelevo expressed serious concern over Ghana’s economic direction. He cautioned that once a government starts seizing domestic savings, it could lead to broader financial instability. “I saw the red flag coming with the Domestic Debt Exchange. I immediately moved my savings, including treasury bills, because I knew it could escalate further,” Domelevo revealed. “It can move to treasury bills. It can even come into your savings account,” he added.
Additionally, Domelevo weighed in on the National Democratic Congress’s (NDC) proposal for a 24-hour economy. While he acknowledged that some sectors could benefit from extended operating hours, he cautioned that the policy should be applied selectively to institutions where it makes sense, such as banks. Drawing from Ethiopia’s experience, where banks operate until 8:00 pm, Domelevo suggested that similar models could help businesses in Ghana, but only if applied appropriately.
Domelevo’s remarks underscored the need for sustainable and transparent policies that can address Ghana’s pressing economic challenges without resorting to short-term fixes that erode public trust. As the country continues to grapple with its ongoing economic difficulties, the real question remains whether these policy promises will bring tangible benefits to the citizens of Ghana, particularly its youth.
