Dr. John Kwakye, the Director of Research at the Institute of Economic Affairs has called on the government to tax extractive companies and take super profit tax from companies like Telecom and Banks in the wake of the DDEP.
According to the Director of Research, government is burdening individuals with taxes, hence, the need to look at other alternatives.
Speaking at a press conference, Dr. Kwakye urged the government to explore various ways of raking in more revenues domestically to support the government in its restructure of the country’s debt.
“We don’t tax companies enough, that, you know, they work in areas where the economy is booming; the extractives, Telecos, banks. And as a developing country, that’s where you need to go. You don’t tax poor people whose incomes are so tiny. You know, but for some reason, we try to avoid that” he said.
The Director of Research suggested that the government should close tax loopholes, particularly those related to import and property taxes, by implementing laws and regulations.
Additionally, he urged the government to renegotiate and adjust the payments to Independent Power Producers as part of the Domestic Debt Exchange Program.
“We need to make sure we close various loopholes in relation to taxes. Government should renegotiate and scale back payment to independent power producers in the spirit of burden sharing”.
Meanwhile, Dr. John Kwakye has requested that the government lifts the 3-year freeze on repaying the principal for the Domestic Debt Exchange Programme (DDEP).
“We are also saying that the 3-year moratorium on the repayment of the principal, the fact that government says for the first 3 years, I am not going to pay you anything on your principal, we are saying it should be abolished.”
Still on the issue of taxes, Civil Society Organizations (CSOs) – Peasant Farmers Association of Ghana (PFAG), Chamber of Agribusiness Ghana (CAG), CropLife Ghana and the National Seed Trade Association of Ghana (NASTAG) are demanding from government tax exemptions on imported inputs.