We've moved from taxation to robbery — Domelevo

He asserted that the current tax structure places excessive burdens on taxpayers, subjecting them to continual taxation even after fulfilling their obligations such as income tax and earnings taxes.

Speaking on JoyNews on Monday, April 8, 2024, Domelevo stressed the urgent need to address these issues to alleviate the ongoing hardships faced by ordinary taxpayers.

He labeled the situation as 'daylight robbery,' demanding immediate attention and resolution.

He said "We have moved from taxation to robbery and the reason why I said that is because when you receive income or you earn any money at all, there will be a withholding tax or a pay-as-you-earn.

"So it is taxed and immediately you want to use the rest to buy anything at all, there is a long list of taxes waiting for you which you have to pay and even when you are paying for the thing that you bought including the tax, you are taxed again; is that not robbery?"

The government led by President Nana Addo Dankwa Akufo-Addo said it is moving Ghana from a taxation economy to a production one.

In 2017, Nana Addo said the private sector must take advantage of the shifting in focus and offer better and more opportunities for growth.

Additionally, Ken Ofori-Atta, the former Finance Minister, emphasized that the government took careful consideration in both the implementation and adjustment of taxes outlined in the 2021 budget.

This strategic approach aligns with the government's overarching goal of transitioning the economy from reliance on taxation to fostering productivity, which remains a central policy objective.

Critics have raised concerns over what they perceive as a reversal in the government's esteemed policy, particularly following the introduction of new taxes such as the COVID-19 Health Levy, as well as increases in the VAT Flat Rate and NHIS Levy.

Furthermore, the budget unveiled proposals for the implementation of a 10 pesewas per litre Sanitation and Pollution Levy (SPL) on petrol/diesel under the Energy Sector Levies Act (ESLA), along with an additional Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA. These measures aim to generate additional resources to cover excess capacity charges arising from the Power Purchase Agreements (PPAs).

Ofori-Atta clarified that these fiscal measures are essential to address anticipated fiscal challenges, thereby ensuring the state's ability to attain financial stability.

By doing so, sufficient liquidity will be made available for entrepreneurs and businesses to leverage, thereby fostering economic growth.