Tax expert and consultant Dr Abdallah Ali-Nakyea has cautioned against the passing of the new revenue measures.
According to him, the new tax measures – the Income Tax Amendment Bill, The Excise Duty Amendment Bill, and the Growth and Sustainability Amendment Bill will affect businesses and increase the unemployment situation in the country.
This, in an interview with Daily Graphic, Dr Ali-Nakyea explained is because the taxes especially Excise Duty Amendment Bill, and the Growth and Sustainability Amendment Bill are likely to force businesses to pass on the increased duty to consumers through price increases, resulting in inflation.
“Businesses were already dealing with challenges such as the high cost of water and electricity, and that with the new tax bills coming into force, it would further increase their operational cost of doing business,” he added.
According to him, in cases where businesses may not want to burden their consumers, they may resort to downsizing with would increase unemployment.
His comment comes after Parliament passed three revenue measures in the government’s attempt to generate approximately GH¢4 billion.
The measures, according to the government, will enable it complete processes to secure a $3 billion International Monetary Fund (IMF) programme.
However, the business, traders associations and some Ghanaians have been agitated about the passing of these new measures saying it will lead to the collapse and relocation of businesses in the country.
Meanwhile, speaking in an interview on JoyNews’ Newsfile on Saturday, an economist Kwame Pianin has called on President Akufo-Addo, not to assent to the three revenue measures bill into law.
This, in an interview in JoyNews’ Newsfile he explained, is because the bill was not well thought out by Parliament.
“President Akufo-Addo should refuse to sign these bills,” he urged.
According to him, Akufo-Addo ought to send the bill back to Parliament for reconsideration.
He accused the lawmakers of failing to ask the relevant questions while the bill was laid before the House. But pass all borrowing bills before the House that have led to the country’s economic disaster.
“After the Ministry of Finance has done its work, obviously, they have to have an economic model which says after the domestic debt exchange what is the economy looking like? What is it going to be?
“Are we going to have depression and low economic growth for the next three or five years and if so what is going to happen to government’s revenue? Nobody seems to be looking at that and then it goes to Parliament.
“We expect parliamentarians to consult their people, think about it and ask questions. They obviously don’t they just pass them so our last hope is for the President to say thank you Parliament I will not sign this bill because it is not good,” he said.
Source: Ghana News
