Independent presidential aspirant and Founder of Movement for Change, Alan John Kwadwo Kyerematen, has argued that, indirect taxation is an unsustainable way of growing the economy.
According to him, indirectly taxing businesses is a lazy way of raising revenue because it kills the private sector which is the engine of growth in every economy.
In an exclusive interview on Asempa FM’s Ekosii Sen programme on Tuesday, Alan Kyerematen lamented that excessive taxes and levies have rendered businesses in the country uncompetitive compared to global markets.
“We have turned our tax regime upside down. In Ghana, we concentrate on indirect tax, duties, and levies, especially at the ports. When you critically analyze it, the private sector cannot compete because you have loaded it with so many taxes. Their prices are so high that they can’t compete in the local market and beyond.
“They cannot employ people as well and the little government gets from direct taxes will go down because they are not employed. Whichever way you look at it indirect taxation is unsustainable,” he said.
The former Minister of Trade and Industry further proposed some solutions for Ghana’s taxing system once elected as President in the upcoming elections.
He said that the entire tax regime can be rectified through a “recalibration” of the system in order to be able to compete with the global markets.
“We are proposing a recalibration of our tax system. We have been dealing with it for so many years and if we don’t change we can’t compete in the global, market. If we can reduce revenue leakages and deal with corruption then we can make more revenue and not necessarily from taxes,” he said.
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