IFS calls for concrete revenue measures to boost Ghana’s economy
The Institute for Fiscal Studies (IFS) has called on the government to implement more robust and effective revenue policies, highlighting that current strategies have not led to a significant increase in revenue relative to the country’s GDP.
Dr. Said Boakye, an economist and the Acting Executive Director of IFS, emphasized the need for the government to address revenue gaps by closing existing leakages and enhancing collection mechanisms. He stressed that imposing additional taxes on the already fragile economy is not advisable, suggesting instead that tax exemptions should be critically reexamined.
While Dr. Boakye acknowledged the recent enactment of the Exemption Act as a positive move, he pointed out that it does not encompass all forms of exemptions, such as corporate income tax exemptions and free trade zone exemptions. He urged the government to conduct a thorough review of all existing exemptions, with the goal of cancelling those that do not yield sufficient benefits to justify their costs in terms of lost revenue.
The IFS’s recommendations are seen as essential in strengthening Ghana’s fiscal framework, ensuring that the country can generate adequate revenue to support its development goals without overburdening the economy with additional taxes.
