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New tax measures can lead to hardship – Lecturer warns

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Dr. Seyram Kawor, a senior lecturer at the University of Cape Coast, has expressed worry about the impact of new tax policies on companies and individuals.

According to him, while the government seeks to create more cash to grow the country, residents would suffer if the incorrect tax policies are implemented.

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This, he claims, has the potential to bring many firms to their knees.

“The larger tariff as we have seen as announced in the budget statement last November may bring some form of hardship to the business community, the individual as a whole. Government would be able to make some revenue but at the end of the day, the citizens would be at the receiving end,” he said.

In an interview with JoyNews on January 1, he said that many people were already apprehensive about paying taxes because the government frequently failed to account for initiatives funded by taxation.

He also stated that the imposition of taxes will raise the cost of living in the country since consumers will be obliged to pay more for the same products.

“As you have the industry players saying when the taxes are implemented, government is going to make in more revenue but the businessmen and women are going to push this taxes to the final consumers and that would raise the prices of items we have in the market”

Again, Dr. Kawor said that because more individuals work in the informal sector, the government could use digital platforms to collect taxes from them and enhance revenue creation.

Although he praised the government for discovering creative ways to extend the revenue generation net by instituting electronic levies, he warned that many people may resort to only utilizing cash in their transactions, meaning that they have dodged taxes.

To remedy this, he urged that the government consider lowering the existing e-levy rate of 1.5 percent.

“In that case people would pay the money without feeling it and that would be a good way to go but as we speak if we do not do that then there would also be avenues where people can avoid tax and that avoidance is not a crime and so we need to have a second look at the e-levy so that we can bring in a lot more people rather than taxing, the few things that we have. Even if you look at the taxes that are being given in terms of the taxes on sanitary pad.

“We also have to find out whether, when that is implemented it is going to reflect in the prices of the items that they produce on the market not a situation where the producers or manufacturers will now come and tell us that the exchange rate is affecting, the fuel price is affecting and for that matter they cannot be able to reduce the prices they have on the market”.

 

 

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