The Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana has called on the government to streamline taxes and enhance the enabling environment for the private sector.
According to ISSER, these measures are essential to help the private sector flourish and create the jobs needed to reduce youth unemployment.
This recommendation comes in the wake of the recently presented Mid-Year Budget Review by the Minister of Finance, Dr. Mohammed Amin Adam. ISSER’s report acknowledged Ghana’s economic resilience, projecting a moderate growth rate of 3.1% based on the government’s Post-Crisis Programme for Economic Growth (PC-PEG) initiatives.
However, the report highlighted concerns about the impact of existing taxes and levies on businesses, particularly noting that a 15% VAT combined with other levies makes Ghana an unattractive destination for investment. ISSER emphasized the need for the consolidation of various taxes and levies that were expected to be addressed in the mid-year review.
The report also pointed out that while Ghana’s per capita income has risen from US$1,979 in 2016 to US$2,365 in 2023, significant inequality persists. It noted that rising food prices and the cost of living have adversely affected the working class, leading to livelihood challenges. ISSER recommended that the government accelerate economic growth while implementing better policies to redistribute income more equitably.
Additionally, the report underscored the importance of improving tax collection efficiency to reduce the need for introducing new or higher taxes.
