Tsonam Akpeloo, the President of the Greater Accra branch of the Association of Ghana Industries (AGI), has voiced strong criticism of the country's tax system, arguing that businesses that diligently adhere to tax regulations are often penalized with additional levies rather than being rewarded for their compliance.
Speaking at a post-budget discussion hosted by Lima Partners on Thursday, March 20, 2025, Akpeloo called for the government to focus on expanding the tax base rather than continuously imposing new taxes on businesses that are already compliant.
He expressed concern that this approach not only discourages tax compliance but also imposes unnecessary financial burdens on businesses striving to operate within the law. "Our view is that we must do more as a country to expand the tax base. Currently, the tax-to-GDP ratio hovers around 13.8%, but we should be aiming for 18% or even 20%. There has to be a deliberate effort to ensure that all eligible taxpayers contribute fairly," Akpeloo stated.
He emphasized that businesses that pay their taxes promptly often find themselves subjected to additional taxes, putting them at a disadvantage. "What is happening now is that once a company dutifully pays its taxes, it becomes a target for even more levies," he remarked.
Akpeloo further highlighted the challenges faced by AGI members, many of whom maintain meticulous financial records and meet their tax obligations, only to be burdened with new taxes without adequate relief. He argued that if everyone paid their fair share of taxes, the burden on compliant businesses would be significantly alleviated.
Additionally, Akpeloo raised concerns about the effectiveness of tax collection mechanisms, particularly within the informal sector. He noted that while the introduction of the Ghana Card was intended to boost tax compliance, many businesses and individuals still evade taxes. "We were told that the Ghana Card would ensure that every registered individual contributes to the tax system, but I don’t believe this has been the case. We need to leverage technology to track and collect taxes efficiently," he stated.
Akpeloo also pointed out the difficulty of taxing the informal sector, where many small and medium-sized enterprises (SMEs) generate substantial revenue but remain outside the tax net. "The informal sector can be tricky and difficult to regulate. Many SMEs earn significant incomes, yet they are not adequately taxed. Simply ignoring this challenge is not an option. We must find innovative solutions to integrate them into the tax system," he concluded.
His remarks reflect the growing frustration among businesses that feel penalized for their tax compliance, while a significant portion of the economy remains untapped for tax revenue. With Ghana seeking economic stability, calls for a more equitable and expansive taxation approach are likely to increase.
Source; theghanareport
Comments
Post a Comment