Former Finance Minister, Seth Terkper has described Government’s proposed revenue measures as draconian and having technical defects.
The bills, namely; the Income Tax Amendment Bill, the Excise Duty Amendment Bill, and the Growth and Sustainability Amendment Bill are expected to generate about GH¢4 billion annually when passed.
Speaking on JoyNews’ Upfront on Thursday, he said that “I say there are technical reasons, past and present why it is draconian. A measure that was in SMCD 5 (Supreme Military Council Decree 5) is being brought back in this day and electronic age.”
According to him, per the tax, “any business that does not declare profit in five years would have to pay a certain tax compulsorily.”
“Where are tax audits, where is the data? The tax audit is going to examine the records for this and if there is a reason they are not paying. Another one, minimum taxes are coming back where you are going to be paying a tax irrespective of business size, it is because of a lack of continuous investment in the domestic tax system,” he stated.
Mr. Terkper added that the above-mentioned are measures that were replaced under the economic recovery programme and Structural Adjustment Programme in Dr Botchway’s era.
He maintained that industry will struggle to operate should these measures receive parliamentary blessing.
Meanwhile, the House will rise on Friday and government will yet again try to have them passed to boost its quest to secure an International Monetary Fund Programme.
In a related development, Economist Prof Stephen Adei says the new measures are necessary for the nation’s survival.
He, therefore, urged Parliament to ensure the bills are passed although not palatable.
“At this moment, if we don’t close the debt, everybody will pay taxes one way or the other. Because, when inflation continues as it is, we are actually paying taxes. People don’t know that rising prices is the same as paying taxes, so that is the way government will get the taxes by letting the prices rise by themselves, and higher inflation leads to higher tax collection,” he added.
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