No government can tax its way out of an economic mess – Ricketts-Hagan

Member of Parliament for the Cape Coast South constituency, George Ricketts-Hagan has bemoaned Parliament’s passage of the government’s three new revenue taxes.

Mr. Ricketts-Hagan said the passage of the taxes will worsen the economic distress of individuals and the growth of businesses in the country.

Speaking on The Big Issue on Citi TV/Citi FM, the Cape Coast South lawmaker said the taxes will drive many Ghanaians down the vulnerability scale and worsen the standard of living of Ghanaians because no country anywhere in the world can tax itself out of an economic mess.

“No economy can tax itself out of the economic challenges that we have. No economy can tax itself out of poverty, no economy can tax itself to prosperity. Economists will tell you that if you really want growth, you have to look at some critical taxes that need to be reduced so that businesses will have the money to invest in the business, hire more people, produce more, and pay more taxes, and then you can get yourself out of an economic situation.”

Mr. Ricketts-Hagan also said the government should assume responsibility for the many ineffective taxes introduced and not blame the International Monetary Fund for such introductions.

He intimated that seeking an IMF programme is not about tax introductions which the government wants Ghanaians to believe, but it is about fiscal consolidation.

“When you go for an IMF programme, it is usually about fiscal consolidation which includes how to enhance your tax, how to rationalise your expenditure, and make sure you reduce your deficit which eventually accumulates to reducing your debt and so if the IMF tells you to go and enhance your taxes, and you choose the taxes that you are going to enhance which are counterproductive, don’t blame it on the IMF.”

-citinewsroom