Renowned Chartered Economist, Mr. Emmanuel Amoah Darkwa, has uttered his analysis considering the mid-year budget review, yet to be conveyed in Parliament.
In his view, Mr. Amoah Darkwa stated, “Article 179 of the 1992 Constitution reveals that Government is obliged to review contents of the budget yearly for the approval of Parliament”. He asserted that the Legislature has an “oversight responsibility” on the Executive and is charged with the task of making the Executive account on how the country’s capital is being utilised.
Additionally, he made it known that Parliament represents each individual in the country, hence, the Executive must make bear the “amount of money needed, money we already have and if possible, if we can gain more.”
The Economist advanced to the issue of hike in Value- Added Tax (VAT), pointing- out that it won’t be a good plan if Government increases VAT, “It is going to be a very bad policy”, he argued. The Economist explained that boost in VAT will lead to high inflation rate, creating hardship in the economy and might cause the government to have trust issues.
Mr. Amoah Darkwa furthered, claiming that less than 20% of the population forfeit their tax obligation, hence, “It will be a lazy approach of increasing revenue.” Rather, he suggested that the Government should set-out on the “hard way” by “blocking loop-holes” for instance fighting corruption. If not, the economy will still remain stagnant even if taxes are increased.
On the subject of initiation of paperless transaction, Mr. Amoah Darkwa alleged that there was a report of loopholes on the border of the state, leading to loss of more than $300million. For this reason, he doesn’t see how well the paperless operation is working.
The Economist averred to the topic of importation of food, assessing that a sum of about $2.5million is spent in importing food into the country.
From his analyses, Ghanaians are more interested in imported foodstuff, with the view that, produce from our country perish early.
Therefore, there is the need to undertake research to curtail that hitch. This will allow money to stay in the country rather than using it to import and avoid our currency being affected by the exchange-rate.
Relating to their manifesto, “Moving the economy from taxation to production”, the budget will affirm whether the current government meant it or not, Mr. Amoah Darkwa claimed.
The chartered Economist asked, “The government scrapped all taxes in the 2017 budget in the view of helping the private sector to grow, thus, why this change of mind in increasing taxes?”
Mr. Emmanuel Amoah Darkwa charged the government to focus on long-term goals. He stressed on that, the attention of government should be on improving our taxation, the cost of credit in terms of borrowing, multiplicity of taxes and cost of electricity and water.
Story by: Sarah Appiah/ pinkfmonlinegh.com