Economist and head of the University of Ghana Economics department Professor Peter Quartey says although government needs to raise revenue, there is no need to overtax the same set of Ghanaians who are paying taxes.
In an interview with Joy news’s Abigail Adomako Antwi on the 2015 budget he insisted government must broaden the tax net with the use of the National Identification System to include the informal sector to raise revenue.
“The artisans hardly pay income tax but for those in the formal sector once your income hits 132 cedis a month you start paying taxes. Some of these artisans on a daily basis are paid 40 cedis and if you do the calculation some earn as much as 600 cedis and yet they don’t pay taxes. l expected to see in the 2015 budget the use of the expansion of the tax administration system to include such people so we raise more revenue domestically”.
Government revised the provisional GDP growth for 2014 from 7.1 % to 6.9%. It also estimated the economy will grow by 3.9 percent in 2015.
Professor Peter Quartey however says government’s projected growth for 2015 is way too low and will not auger well for the economy.
He maintains the 3.9 growth rate stated in the budget will mean businesses will not flourish and will therefore not be in a position to import the capital goods needed to expand their operations.
Ultimately, he says investments will suffer. He adds living standards will be impacted negatively.
Professor Peter Quartey has meanwhile commended government for taking steps to cut down the wage bill, poultry imports and the creation of the Exim bank.
source : myjoyonline.com