Tax Justice Coalition (TJC), a non-profit organization has urged the Ghanaian government to intensify domestic revenue mobilization to fill the financing gaps brought about by COVID-19 outbreak.
Speaking at a virtual program here Monday, acting national coordinator Benard Anaba asked the government to reinstate the nuisance taxes it abolished recently and take steps to expand the digital economy.
He observed the pandemic has exposed the economy of the cocoa-growing country the need to embark on a massive local revenue drive.
“The government must take steps to tax the expanding digital economy and property taxation; enforcing the laws on rent tax and capital gains tax as well as raising the corporate and marginal tax rates to at least 30 percent,”he said.
The government must also tighten and enforce the tax laws with regards to benefits in kind for public servants, including accommodation, vehicle, driver and fuel usages as well as entertainment, end of service benefits, among others, which affect only a few well-off individuals in the country,” Anaba added.
Ghana’s Finance Minister Ken Ofori-Atta recently cut the country’s economic growth forecast for 2020 to the lowest in 37 years due to the collapse in oil prices and the impact of the COVID-19.
The estimate compares with the government’s initial projection of 6.8 percent and will be slowest since the economy contracted in 1983.