Energy expert, Kojo Opoku has stated that it will be difficult for the finance minister to reduce taxes in the upcoming 2022 Budget and Economic Statement of the government come Wednesday 17 November 2021.
According to him, the government needs money to implement its policies and sustain the pick-up in economic activities the country is experiencing after the negative impact of the COVID-19 pandemic.
Speaking to Emmanuel Aboagye Wiafe on Energy 101 Monday (15 November) “It’s difficult for the minister to reduce taxes which will in effect reduce prices. Because if you look at the outlook, we need more money, we need to close the fiscal gap between what we need to make investment and the revenue that we generate,” he stated.
Also, Opoku called for the government to make a conscious effort by investing more into the energy sector.
He said, “For some of us, it’s not really about the downstream, it’s about investment into the power sector. The power sector is still a problem. In the past couple of weeks, we’ve seen erratic power supply in the country and that’s because the investment needed in that area is still not sufficient. So, I’m the last person to come and talk about reduction of taxes to give a reduction of prices at the pumps.”
Tax expectations ahead of 2022 Budget
The Ghana Union of Traders Association (GUTA) has appealed to the government to use the 2022 Budget to reduce the cost of doing business and strengthen companies to spur economic recovery.
The business advocacy group also urged the government to resist the temptation to introduce new taxes in the budget, given the hardship businesses are facing at the moment.
The Spare Parts Dealers Association of Ghana has also called on the government not to introduce new taxes in the impending 2022 Budget.
Some new taxes were introduced in the 2021 fiscal year, while some already existing ones were adjusted upwards as part of plans towards the economic recovery of the country.
Nicholas Brown
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