A professor of finance and economics at the University of Ghana, Prof Godfred Bokpin, has called on the government to develop a clear policy to tax high-net-worth individuals to reduce the tax burden on ordinary Ghanaians and businesses.
Speaking on Joy FM’s Super Morning Show during a discussion on the economy, Prof Bokpin said Ghana’s tax system focuses heavily on salaried workers, while wealthy individuals who earn from other sources often contribute less.
“We are taxing income in terms of personal income tax, but high-net-worth individuals don’t actually live on salary or wages,” he noted.
He urged the government to “have a policy about taxation of high-net-worth individuals, back that with a strategy, and then restructure the high-net-worth office at the GRA.”
Prof Bokpin praised the Ghana Revenue Authority’s (GRA) High Net Worth Office for its work in recent years but said more needs to be done to ensure the rich pay their fair share.
He also suggested that it should be “mandatory for all board members of state-owned enterprises and public listed companies to file their tax returns,” adding that the requirement could later be extended to other professionals like accountants, lawyers, and actors.
Prof Bokpin warned that businesses are struggling under the current tax regime.
“Businesses are suffocating. This is a small open economy, but it is possible that one entity may be required to be tax compliant of maybe six or so different tax handles in a fiscal year,” he said.
He argued that Ghana’s development challenges have more to do with “corruption and inefficiency” than a lack of tax revenue.
Comparing Ghana to countries like Malaysia, Singapore, and China, he said those nations progressed through “efficiency and prudence,” not by “burdening their citizens and businesses with taxes.”
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