Economist dreads the effects on the proposed hikes on businesses

Economist, Professor Peter Quartey says though the proposed hikes in tax rates would help improve government's revenue, it would seriously hurt businesses.

Finance Minister, Seth Terkper yesterday announced some proposed increases in tax rates to help government to meet revenue shortfalls. This includes imports levy, excise duties, charges on some services and the re-imposition of stabilization levy.

But Professor Quartey tells JOYBUSINESS, the hikes could rather collapse businesses.

“The negative side of this would be the ordinary Ghanaians because if this is going to affect import duties then definitely affect the prices of imported items.” he said.

He addded government should have rather considered expanding the tax-net.

“There are lots of artisans like masons, carpenters etc all earn above the tax threshold of 120 Ghana cedis yet they are not taxed. That is why I called for a survey of all informal sector activities to see how much people earn and get them to register with identifiable associations to be taxed” he said.

Story by Ghana / Joy Business / Emmanuel Agyei / George Wiafe