The Executive Director of Revenue Mobilisation Africa and a member of the Tax Justice Coalition, Geoffrey Ocansey has urged government to take a second look at the taxes introduced in the 2021 budget statement.
He said the taxes must be properly targeted in order not to overburden the already struggling individuals and businesses thar are yet to recover from the ravaging effects of the COVID-19 pandemic.
In an interview with GBC NEWS, Mr. Ocansey said re-targeting the tax, to especially, companies who made most profit during the pandemic, will go a long way to cushion government’s revenue mobilisation efforts.
Government in the 2021 budget introduced about six taxes and levies ranging from 1% Value Added Tax, (VAT), 1% on National Health Insurance Levy (NHIL), 5% Financial Sector Clean up tax on banks, to a 10 pesewas Sanitation Levy among others. He said though government needs these taxes for national development, it is imperative that other avenues of revenue mobilisation are considered.
“Government should pass the Tax Exemptions Bill to ensure proper management of the exemptions regime,as well as , cut government expenditure, improve tax collection systems, reduce drastically losses from illicit financial flows especially transfer pricing and the negative effects of cash and tax irregularities that causes significant revenue loss to the state.
Stressing the need for the expansion of the tax net, Mr. Ocansey noted that, “Government must re-strategize to expand the tax net and block all other loopholes in the revenue mobilisation stream.
Expanding the tax net means bringing all on board especially those businesses that operate during the night and at dawn at various market centres.”
