Dr. Adu Sarkodie supports feasibility of Bawumia's tax abolishment proposal

Dr. Owusu Adu Sarkodie, an economist has expressed support for the feasibility of the proposal by NPP flagbearer Dr. Mahamudu Bawumia to eliminate specific taxes if elected president.

Dr. Bawumia outlined this initiative, including the abolishment of the E-levy, emissions tax, VAT on electricity, and the betting tax, during his recent vision statement in Accra.

In an

Read full articleinterview on The Big Issue, Dr. Adu-Sarkodie noted that Dr. Bawumia's plan reflects a consideration of the concerns voiced by Ghanaians. He acknowledged the NPP government's past abolishment of taxes in 2017 but stressed the importance of having a contingency plan to mitigate potential revenue losses, a factor he felt was lacking in the previous tax abolishment.

“I think that they have done something similar before. In 2017 when they came, we were still under an IMF programme and they still abolished many taxes. What we didn’t see in that budget was a contingency plan to make sure that the government doesn’t lose on revenue generation. So I think they may have learnt from their mistakes and that even if they succeed to abolish the taxes they must have a contingency plan so that we can raise enough revenue.”

Dr. Adu-Sarkodie emphasised the need for a well-thought-out contingency plan while praising Dr. Bawumia for listening to the concerns of various stakeholders.

Meanwhile, the government has officially suspended the planned implementation of the 15% Value Added Tax (VAT) on domestic electricity consumption, citing the need for extensive dialogue with industry players and labor unions.