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Check for Tax Cert from masons and carpenters before giving jobs – Expert
A tax expert Nyamekye Adjei explained that a consistent demand for the tax certificates of local artisans before giving them a job will cause them to pay taxes to the state.
In an interview with Accra-based Starr FM, he said this was one of the surest ways the public can help widen the tax net.
He explained further that a consistent demand for the tax certificates of local artisans before giving them a job will cause them to pay taxes to the state.
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“Contractors and masons should produce documents to show they’ve paid their taxes before their services are employed. As a good citizen, you should employ the services of people who pay taxes.”
The government has been unable to capture the majority of Ghanaians into the tax net. This means few people pay for the entire population. This also implies that the government does not meet the tax realisation targets it sets.
The government, therefore, increases taxes to make more money for developmental projects.
However, Nyamekye Adjei advised government against increasing taxes since that will have grave consequences on the citizenry.
“I will not propose tax increment because once VAT is increased; the Labour Union will come in with demands for income increment. When demands of Labour is not working, purchasing power will reduce and the objective of the government will not be met.”
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Some Ghanaians have already warned the government against speculations that the government intends increasing taxes in the mid-year review budget scheduled for Parliament on Thursday, July 19, 2018.
The government is considering introducing taxes such as;
1. An increase in Communications Service Tax from 6% to 12%?
2. A mandated minimum corporate tax
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3. An expanded stabilisation tax?
4. Collaterising royalties from minerals to enable the government to raise loans
5. Increased social security (SSNIT) contributions to the NHIS?
6. A Financial Service Tax
The government is also likely to increase the Value Added Tax (VAT) from 17.5% to 21% in the mid-year budget set to be presented to Parliament.
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