Government of Ghana is confident that, with revenue mobilization activities turning out impressive results, tax cuts would become possible in the very near future, Minister for Finance Ken Ofori-Atta has said.
According to him, government is confident that the measures now being implemented will ensure that many more Ghanaians are brought into the tax net thereby making it possible to reduce taxes while abolishing import duties.
Ofori-Atta, who is leading a strong government delegation on a non-deal road show in Asia, assured Ghanaians whom he had been meeting Tuesday in Japan that government had not increased taxes; rather, with digitization of the systems at the ports, and enforcement of rules, people were now paying the actual duty on goods.
“We are ready for some radical moves especially as we digitize the economy things will get more efficient and we will then charge people appropriately,” he said, according to a release issued by the detailed update on the tour received from the finance ministry.
Ultimately, the finance minister said as the systems improved and more people were captured in the tax net, the rates would come down and Ghana could choose to abolish duties at the ports as was done in Singapore and other countries.
He said though the government inherited an economy on a downward trend, prudent management adopted had resulted in phenomenal achievement within a year and the macro economy stabilized.
“These included abolishing of nuisance taxes, restoration of nurses and teachers’ allowances, implementing the free SHS, among others, to demonstrate that government was keen on making life comfortable for Ghanaians and for businesses to thrive,” the minister added.
The group of Ghanaians at the meeting commended government for the political and macro stability achieved so far and appealed for an accelerate implementation of policies to improve things faster.
They acknowledged the wind of change but were not enthused about what they called slow pace of reforms in key sectors and processes such as passport acquisition and clearance of goods at the ports.
The team has been in Asia since Monday (April 9) on the second leg of the non-deal road show to woo investors for possible bond issuances in China, Japan, and Korea, among others. Enditem