A tax expert has called on the government to consider reintroducing some recently scrapped taxes as a way to address the growing revenue shortfall and stabilize the country’s finances.
The recommendation comes amid ongoing discussions about the fiscal impact of removing certain levies, including the controversial electronic levy (E-Levy), COVID-19 levy, and betting tax. According to the expert, while the removal of these taxes has provided relief to citizens and businesses, it has also created a significant gap in government revenue.
Speaking on the issue, the expert emphasized that taxation remains a critical tool for funding national development, including infrastructure, healthcare, and education. Without adequate revenue streams, the government may struggle to meet its financial obligations and sustain economic growth.
The concerns follow recent findings by the Centre for Policy Scrutiny (CPS), which highlighted the fiscal implications of abolishing key taxes. The report has intensified debate among policymakers and stakeholders over the need to strike a balance between easing the tax burden and maintaining sufficient public funds.
In light of this, the expert suggested that reintroducing some of the scrapped taxes possibly with modifications to make them more efficient and less burdensome could help bridge the revenue gap. He added that improving tax administration and widening the tax net should also be prioritized to boost domestic revenue mobilization.
The Ghana Revenue Authority (GRA) has also reiterated the importance of tax compliance, urging individuals and businesses to fulfill their obligations as part of efforts to strengthen the economy.
The proposal, however, is expected to generate mixed reactions, as many citizens had welcomed the removal of the taxes due to their impact on the cost of living. As the debate continues, government faces the challenge of balancing public sentiment with the urgent need to secure sustainable revenue sources for national development.
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