Professor Stephen Adei Mensah has called on politicians to adopt a more realistic approach to tax policies, warning that campaign promises to eliminate certain taxes often result in more complex and burdensome levies once in office.
He emphasized that the hasty removal of taxes without a well-thought-out plan leads governments to introduce more complicated taxation systems in order to meet revenue targets. "There is a need for much more rationalization rather than the politically expedient approach of simply scrapping taxes," he stated.
Reflecting on previous administrations, Professor Mensah pointed out the frequent changes in tax policies once leaders assume power. He noted, "You can reference what the former president promised but did not follow through. What typically happens is that they may eliminate one tax but are then forced to find alternative revenue sources. This is how the proliferation of taxes occurs."
He explained that, in such instances, leaders may cancel a levy only to later discover the need for the funds, which often leads to the introduction of more complex taxes. "They immediately remove one tax, and later realize that they need the money, so they introduce far more complicated ones," he added.
According to Professor Mensah, effective governance requires pragmatic decision-making that sometimes contradicts the idealistic promises made during campaigns. "It’s one thing to make a political statement and another to govern the country," he said.
In response to recent pledges to abolish the E-Levy and betting taxes, he cautioned that such promises would necessitate alternative revenue measures, which may prove even more burdensome. He noted, "As President Mahama mentioned, he has no choice but to scrap the E-Levy and betting taxes and find another way to replace the revenue. However, any alternative will likely be more complicated than the E-Levy."
Source; mynewsgh
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