Former Finance Minister Dr. Mohammed Amin Adam has known as for pressing and daring reforms in Ghana’s tax administration system to plug important income leakages and safe the nation’s financial independence.
Talking as Visitor Speaker on the Nationwide Dialogue on Tackling Tax Income Leakages on the College of Skilled Research, Accra (UPSA), Dr. Adam described the nation’s present tax system as “inefficient and porous,” warning that with out swift motion, Ghana would proceed sacrificing improvement and sovereignty.
“Our failure to generate optimum tax revenues has compromised our path to sustainable financial development,” Dr. Adam mentioned. “We aren’t in need of tax devices or reforms, the true situation is efficient implementation and compliance.”
He cited a 2022 GRA evaluation which discovered that Ghana collects solely 39% of its potential VAT income and solely 18.5% of potential company tax income, describing the losses as “staggering.”
“These leakages signify colleges not constructed, hospitals not outfitted, and roads left unpaved,” he added.
Dr. Adam proposed specializing in compliance and shutting loopholes reasonably than rising tax charges or introducing new levies. “Our tax system is sort of a leaking pipe; you don’t add strain, you repair the leaks,” he mentioned.
He emphasised reforms initiated throughout his tenure, together with the Income Assurance Compliance and Enforcement (RACE) initiative, the Built-in Customs Administration System (ICUMS), and the mixing of the Ghana Card with the tax system. He additionally known as for a complete overhaul of how Ghana taxes high-revenue sectors like mining and petroleum.
“The present strategy to taxing the extractive sector creates uncertainty and deters funding,” he famous. “We want a complete fiscal regime with predictable guidelines, together with a well-structured useful resource lease tax.”
He additional highlighted illicit monetary flows, a slender tax base dominated by the casual sector, and IMF-driven tax hikes as important points. “The casual sector can’t be ignored. It constitutes 72% of GDP and 92% of registered corporations,” he mentioned.
Wanting forward, Dr. Adam warned of rising threats to income, together with declining improvement assist, US remittance taxes, international commerce wars, and the influence of inexperienced financing on tax incentives.
“Both we strengthen tax compliance at this time, or we preserve surrendering our assets and sovereignty,” he concluded. “Let this dialogue be the turning level for concrete and transformative motion.”
The occasion introduced collectively leaders from academia, authorities, and civil society.
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