Renowned economist and professor at the University of Ghana, Prof. Patrick Asuming, has expressed strong reservations about the possibility of the government introducing new taxes in the 2025 budget.
According to him, he would be “extremely shocked” if the government took such a step, given the current economic challenges and the financial burden already placed on Ghanaians.
Instead of imposing additional taxes, he believes the government should explore other revenue-generating measures, such as removing some existing taxes and reviewing tax exemptions.
Speaking in an interview with JoyNews, Prof. Asuming stated that there are better alternatives to increasing the tax burden on citizens.
He argued that the government could focus on improving tax compliance, broadening the tax base, and cutting wasteful expenditures rather than introducing new levies.
“I will be extremely shocked if the government decides to introduce new taxes. I think they may decide to remove some taxes or change the way some taxes function or are computed. Or they might also decide to remove some exemptions. But I expect a net removal of taxes or a net reduction in the taxes that are being added,” he stated.
His comments come in the wake of strong opposition from the Minority in Parliament regarding any potential tax increases. The Minority, in an earlier press briefing, warned that they would resist any attempts by the government to introduce new taxes in the upcoming budget.
They recalled that the current administration had made promises to reduce taxes in order to alleviate the economic hardship faced by Ghanaians. According to them, introducing additional taxes at this point would contradict those promises and further worsen the economic struggles of businesses and individuals.
Meanwhile, President John Mahama has justified his administration’s plans to scrap what he describes as “nuisance taxes.” He argues that the removal of certain taxes will provide relief for businesses and individuals while stimulating economic growth.
Speaking in an interview with the Global South World News Network, Mr Mahama stated that his administration intends to cut unnecessary government expenditure and expand the tax net to compensate for any potential revenue shortfalls. He also stressed the need for a more simplified tax regime to enhance compliance and ease the burden on businesses.
As part of his vision for a more efficient tax system, the President-elect pledged to simplify the Value Added Tax (VAT) structure and streamline its collection using Point of Sale (POS) devices. He believes this digital approach will enhance transparency, reduce revenue leakages, and ultimately improve tax administration in the country.
With the 2025 budget set to be unveiled in the coming months, all eyes are on the government to see whether it will heed these concerns or introduce new revenue measures. The debate over taxation remains a critical issue as Ghana navigates its post-crisis economic recovery.
For now, stakeholders, including economists, businesses, and political figures, continue to advocate for policies that will ease the financial burden on Ghanaians while ensuring sustainable revenue generation for national development.
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