Current system not effective enough to mobilise more revenue – Gyan-Quansah
A Tax Partner at the Pricewaterhouse Coopers (PwC), Abeiku Gyan-Quansah says the current economic system in the country is not effective to mobilise more revenue.
According to him, even though there is general recognition of the need to raise more revenue, prevailing circumstances do not provide the right opportunity to mobilise projected revenues as stated in the 2023 budget.
Government says it is projecting its total revenues and grants for 2023 at ₵144billion.
But speaking on JoyNews’ PM Express Business Edition, Mr. Gyan-Quansah said this projected revenue is unattainable.
“Speaking to some of my clients and based on other views, we recognised that there is the need to raise more revenue but the current system that we have is not effective enough to mobilise more revenues.”
Mr Gyan-Quansah made some recommendations to the government which will help revive the current economy.
“What we are recommending the government to do is that, as part of this budget, there is the Post Covid-19 Recovery program. If we are going to be in the Covid-19 Recovery program then what are we still doing with the Covid-19 levy? So it should be taken out.”
“If the Covid-19 levy is taken out, then we now have the health levy, education levy, and the proposed 2.5%. Consolidate all of it into the VAT which will give you a total standard rate of 20% instead of 21%.
“Then allow businesses to take their full recovery of the 20%,” he said.
He added that doing this will help government to avoid the situation where people get unnecessarily aggressive because they cannot deal with the 21% VAT.