STRENGTHEN REVENUE MOBILIZATION - IEA TELLS GOVERNMENT
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STRENGTHEN REVENUE MOBILIZATION - IEA TELLS GOVERNMENT


Story by Carlos Afanou



The Institute of Economic Affairs Ghana (IEA)  has on Tuesday, July 28, 2020 called on the government to strengthen tax mobilization, especially in the informal sector, in the wake of the COVID-19 pandemic. They made the call after reviewing the government's mid-year budget policy statement presented to parliament on July 23, 2020.

According to the institute, the informal sector contributed about 30 per cent of the country's Gross Domestic Product (GDP),  adding that stretching out the tax net to the informal sector had the potential of increasing revenue to fund government's expenditure.

The Director of Research, IEA Ghana, Dr. John Kwabena Kwakye, called on Parliament to expedite the passage of tax exemption considering the fact that tax exemptions to certain persons and institutions constituted over Gh¢5 billion.


"One key area of revenue mobilization which could facilitate government's expenditure which is mostly overlooked is taxes from properties we term 'property tax'. This could be assigned to the assemblies, which would, in turn, generate funds for development at the local level."

Dr. Kwakye emphasized that Ghana's tax efforts were low and called on the government to track revenue leakages to increase the tax to GDP ratio.


Again, Dr. Dede Amanor-Wilks, the Executive Director of IEA, spoke on the need for  the government to be concerned about meeting revenue shortfalls to grow the Ghanaian economy.

She concluded that strengthening revenue mobilization was critical to building a resilient economy, calling on government to increase its industrialization drive.
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