Accra, Ghana, July 20, 2018//-The Mid-Year Review Budget read to Ghanaians on the floor of Parliament is characterized with a lot of camouflages.
One would realize that, the actual intention of the budget changed in few hours of its outdooring. We all know what a budget is, at least, to a certain level.
Instead of the Minister of Finance, Ken Ofori-Atta telling us how to source for funds to fill the gaps all over the place, he diverted into pure politics and telling us history.
In our lives at this critical economic crisis, we are not ready to listen to any history, where NDC -NPP comparison has become the norm when they are to discharge serious business.
The announcement that there is no increase in VAT is a palpable lie. The is an increase in disguise. Tax is tax, whether increase or restructuring, it is a tax increase.
Therefore, businesses must be aware and adjust accordingly. This is unfair to Ghanaians anyway.
Tax administration does not allow that the taxpayer should not be aware of the tax he or she is paying. This violates certainty in tax administration. The Minister needs to come back and tell us the truth.
Notwithstanding all these, there is some elements that are very crucial to us. For example, the Minister talked about taxing luxury cars, concentrating on domestic borrowing, blocking leakages in the economy, collect tax in arrears, ensure compliance, and many more.
The rich and the poor must not pay the same tax. So there is a sense in that. If you borrow from home, debt serving is comparatively manageable since we are talking about the same currency units.
The leakages are everywhere. From the ‘ghost names’ on the Controller and Accountant General Payroll to inflating contract prices to diverting state funds collected from market women.
The more devastating one is paying people who are doing nothing around the president. Outstanding revenue taxes must well be investigated to find out why: 1. The economic situations are not helping the businesses to pay; and 2,Or there is someone who collects bribe and ask them to relax.
The bitter truth. But I believe when compliance is vigorously pursued, some of these things will be eliminated.
By Francis Gamli – Dovene
