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Opinions of Sunday, 18 July 2021

Columnist: Prince Akyereko

Creating a fairer tax system for Ghana

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A fairer tax system brings confidence in every society and encourages people to pay more tax, participate in national revenue mobilization and thus creating more public revenue. For Ghana to have a fairer tax system that encourages people to pay more taxes. That instils more confidence in the tax system and tax administration. That encourages people to participate in national revenue mobilization.

It is high time we removed all tax-free income from the system especially those working for government. We must tax everyone who earns an income. If it means asking them to pay pesewas from their income. From parliament to corner street store. From Presidency to the hawker on the street. From family that have high income to a middle-class income family. Everyone should be made to pay tax their fair share of the tax. When everyone pays their fair share of the tax. It brings confidence and pro-poor policies can be financed without any loan for future generations to pay.

Everyone in both public and private sector including the President should be made to pay tax from their income. From the Presidency to the national service person who is about to start working life should be taxed so that paying tax will be part and parcel of their life as they transition into the working environment. How do you justify taxing a hawker selling dog chain on the street and allow a president or judge who earns more than 20,000 Ghana cedis to go untaxed?

The idea that we will only tax importers to fill the gap in our tax system does not help anyone. It is a broken and not well thought out system that needs overhaul.

At the end of the day, it is the people who end up paying whatever tax the importer pays as that cost gets shifted to the final consumer of the product. It is important we create a fairer tax system that calls for everyone to pay their share of the tax without any barriers.