Gov't won't overburden Ghanaians with more taxes — Finance Minister

During a press briefing on Saturday, April 13, 2024, Dr. Amin Adam, the Minister, announced the government's firm stance on revenue collection, stating that they would take stringent measures to gather taxes from those who have been avoiding payment.

This declaration came after Ghana attained a staff-level agreement with the International Monetary Fund (IMF) regarding the Extended Credit Facility (ECF) arrangement.

Dr. Adam highlighted the revenue gap of GH¢1.8 billion resulting from the suspension of the 15 percent Value Added Tax (VAT) on electricity consumption and the GH¢100 annual levy on petrol and diesel vehicle owners.

He emphasized the urgent necessity to boost revenue in alignment with the US$3 billion loan-support program's execution while ensuring minimal burden on Ghanaian taxpayers.

The Minister affirmed the government's determination to implement revenue generation mechanisms outlined in the 2023 and 2024 budgets more effectively.

Specifically targeting those who evade taxes or fail to pay, the government aims to bridge the revenue gap created by the tax suspensions.

"Now, we're determined to go out there and collect the taxes from those who have not been paying and those who have been evading taxes…to generate the desired revenue to fill the gap created due to the suspension of the taxes," Dr. Adam stressed.

He added that ongoing tax administration reforms aimed at ensuring accurate assessments and prompt payment of taxes, emphasizing simplicity and efficiency in the process.

However, he cautioned that aggressive revenue mobilization should be balanced with expenditure rationalization.

Addressing concerns about controlling expenditures, Dr. Adam disclosed measures such as an arrears-clearing plan and the integration of more agencies into the Government Integrated Financial Management Information System (GIFMIS) to prevent overspending and unauthorized expenses.

Acknowledging the challenges faced by Ghanaians and businesses due to reforms under the IMF loan-support program, Dr. Adam reassured that the government empathizes with their difficulties.