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28.07.2016 Politics

Gov't saddling businesses with taxes – Konadu

By MyJoyOnline
Gov't saddling businesses with taxes – Konadu
28.07.2016 LISTEN

Presidential Candidate of the National Democratic Party (NDP), Nana Konadu Agyeman Rawlings, has backed calls for a better tax regime, warning the current tax system is counterproductive for economic development.

Mrs Rawlings says although taxes are necessary for financing infrastructural and other projects, no country has ever developed by burdening businesses, especially, with taxes.

When taxes are overly high, production drops, businesses suffer and close down, she said.

The NDP leader said this when she took her turn at the Institute of Economic Affairs (IEA) Evening Encounter with Presidential Candidates ahead of the December 7 polls.

“The government is telling us only a few Ghanaian pay taxes. The NDP wants to differ. Everybody pays tax on rural water, [National Health Insurance Scheme] NHIS – these taxes are on everything that we buy,” she said.

Mrs Rawlings’ views about the country’s tax regime have been expressed similarly by many analysts.

A recent report by Databank Financial Services notes that Ghanaian businesses make 33 different tax payments a year, spend 224 hours a year filing tax returns, amounting to 32.70% of profits of their total profits. This according to analysts makes Ghana's tax regime unfavourable compared to other countries.

Others have also criticised the current and previous governments for failing to expanding the net.

Speaking Wednesday at the IEA forum, Nana Konadu Agyeman Rawlings said if voted into power, she will revamp the country’s tax regime to reduce the pressure it brings to businesses.

She also bemoaned failure by the current administration to improve the country’s energy challenges, noting Ghanaian businesses and the economy will be the ultimate losers if it persists.

“Some businesses have relocated to neighbouring countries because of energy. Ghana needs to look at developing a sustainable energy,” she said.

She said her government would pass a law that makes property developers incorporate solar energy technology into their construction like other countries have done.

Story by Ghana | Myjoyonline.com | George Nyavor | Brako Powers

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