Finance Minister Dr. Mohammed Amin Adam has reaffirmed the government’s commitment to avoiding additional tax burdens. Amidst the backdrop of a recent staff-level agreement with the International Monetary Fund (IMF), Dr. Adam assured the public that stringent measures would be taken to address revenue shortfalls without overburdening taxpayers.
During a press briefing held on Saturday, April 13, 2024, Dr. Adam outlined the government’s stance on revenue collection, emphasizing a targeted approach to gather taxes from those who have evaded payment. This announcement follows Ghana’s attainment of a staff-level agreement with the IMF regarding the Extended Credit Facility (ECF) arrangement, signaling a pivotal moment in the country’s fiscal trajectory.
Highlighting a revenue gap of GH¢1.8 billion resulting from the suspension of certain taxes, including the 15 percent Value Added Tax (VAT) on electricity consumption and the GH¢100 annual levy on petrol and diesel vehicle owners, Dr. Adam underscored the urgent need to boost revenue while minimizing the burden on taxpayers.
The Minister reiterated the government’s determination to implement revenue generation mechanisms outlined in recent budgets more effectively. Specifically targeting tax evaders and non-compliant entities, the government aims to bridge the revenue gap created by the tax suspensions through proactive measures.
Dr. Adam emphasized ongoing tax administration reforms aimed at streamlining processes, ensuring accurate assessments, and promoting prompt tax payments. Simplicity and efficiency are at the forefront of these reforms, designed to facilitate compliance while enhancing revenue collection.
However, Dr. Adam cautioned that aggressive revenue mobilization should be balanced with prudent expenditure management. To this end, he disclosed measures such as an arrears-clearing plan and the integration of more agencies into the Government Integrated Financial Management Information System (GIFMIS) to curb overspending and unauthorized expenses.
Acknowledging the challenges faced by citizens and businesses amidst reforms under the IMF loan-support program, Dr. Adam reassured the public of the government’s empathy and commitment to addressing their concerns. The overarching goal remains to navigate fiscal challenges while safeguarding the interests of all stakeholders.
As Ghana charts a course towards economic stability and sustainable growth, the Finance Minister’s pledge of tax relief underscores a proactive approach to fiscal management, prioritizing the welfare of the nation’s citizens in the face of evolving economic dynamics.
