Franklin Cudjoe, President of IMANI Africa, has criticised the Ghanaian government for maintaining the COVID-19 levy despite widespread opposition from the business community and urged its immediate repeal.
The levy, introduced to mitigate the financial impacts of the pandemic, has faced mounting calls for removal, particularly from business sectors ahead of the mid-year budget review.
However, the government has defended its necessity, citing ongoing economic challenges stemming from COVID-19.
Minister of State at the Finance Ministry, Abena Osei-Asare, recently defended the government’s stance during a session with the Public Accounts Committee of Parliament, emphasising that while the immediate threat of COVID-19 has waned, its financial repercussions remain significant.
In an interview on Channel One TV’s Big Issue with Selom Adonoo, Cudjoe highlighted the burden taxes are placing on Ghanaians, underscoring the need for urgent action to rescind the COVID-19 levy. Despite substantial tax revenues, he expressed dismay over the perceived lack of infrastructure development.
Cudjoe stated, “Look at the bleeding we have been experiencing in terms of the way taxes received are wasted. So, there’s a specific anomaly in thinking that only the government can deliver development to persons and individuals.
I’m not sure we should be conceptualising the essence of government… In the face of the wanton distraction that has happened to COVID-19 money, you recall a special audit done for all COVID-19 received funds.”
Expressing fundamental disagreement with the current tax policies, Cudjoe stressed the importance of efficiently allocating tax revenues for infrastructure and advocated for greater private sector involvement in development initiatives.
“I have a challenge with the COVID-19 tax, and I think it is important that we address it even though we are facing economic challenges largely imposed by our own doing. This whole conversation about the COVID-19 tax is quite unnerving,” he concluded.
