Dr Adu Owusu Sarkodie, a lecturer in the Department of Economics at the University of Ghana, has expressed reservations over new taxes introduced by the government in the 2021 Budget.
Speaking to Kojo Mensah on The Asaase Breakfast Show on Monday, Dr Sarkodie said the new taxes should have been introduced next year to give Ghanaians some respite, considering the impact of COVID-19 on the economy.
“The existing ones should have been tackled, then you add on with the new taxes. That is my first point. And my second point is that with the new taxes I was rather expecting them next year, because this year the coronavirus comes with so many uncertainties,” he said.
“Right now, we are only hopeful that gross domestic product will pick up from 0.9 to 5%. We are only hopeful. We know why it dropped from 6% to 0.9, because of the virus. If we have not been able to defeat the virus completely, the uncertainties surrounding the virus and its effect on the economy will still be hanging.”
New taxes
The government last week introduced new taxes in the 2021 Budget, including a sanitation and pollution levy, a gaming tax and a COVID-19 health levy to help shore up revenue.
The new taxes have since been greeted with mixed reactions, some arguing that it will bring untold hardship to ordinary Ghanaians.
Commenting further on the matter, Dr Sarkodie argued that the government must expedite the passage of the Tax Exemption Bill to help address the concerns of Ghanaians.
“The Tax Exemption Bill has been on the floor of Parliament for months. Where was the willingness of the central government and Parliament to pass it?”
However, he described the government’s intent to focus on completing old projects, as announced in the Budget, as a step in the right direction.
Fred Dzakpata
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