Dr Frank Bannor, a Development Economist, has praised Dr Mahamudu Bawumia’s tax reform suggestions, emphasizing that they are essential for Ghana’s rapid growth and progress.
The Head of Research at Danquah Institute (DI), Dr Bannor, pointed out that Ghana’s current tax system is overly complex, posing challenges for citizens to fulfill their tax responsibilities.
If citizens know they’re likely to reap benefits from filing their tax returns, they’ll gladly file their tax returns. South Africa has shown the way, go to Johannesburg and see how happy citizens become queuing to file their taxes.
Our meetings with organized labour including GUTA, Ghana Pharmaceutical Association, Ghana Medical Association and others have shown that the existing tax system is too cumbersome for them, and this brings about disputes and conflicts between them and the Ghana Revenue Authority.
He stressed the importance of ensuring that business owners are well-informed about their tax obligations in order to prevent situations where GRA officials mistakenly demand higher taxes, ultimately causing many businesses to struggle and evade tax payments.
It is upon this that Vice President Bawumia, when he met the leadership of Ghana Chamber of Commerce that he pledged to do away with the existing tax system and replace it with a flat rated tax system, a very flexible tax regime and grant tax amnesty to motivate citizens to file their taxes at the end of every year.
Dr. Frank Bannor emphasized the importance of implementing tax amnesty in Ghana, stating that it would provide individuals with outstanding tax liabilities the chance to have their debts forgiven.
He highlighted that this initiative would not only boost revenue for the government but also increase the number of taxpayers contributing to the consolidated fund. These views were shared during his appearance on Adom TV’s Badwam morning show with host Omanhene Kwabena Asante.
