Learn from Uganda, impose tax to fund free SHS - Akufo-Addo gov't urged

The Akufo-Addo government has been urged not to shy away from imposing a tax to fund free education following a raging debate over the funding source for the 2016 campaign promise.

A pro-social intervention civil society group, ISODEC made this recommendation, urging government to follow after Uganda's model which "relied heavily on taxation" to make its free senior high school education happen.

The debate over funding was triggered by Senior Minister Osafo Maafo after he said government was likely going to use a fund reserved for Ghana's unborn generation, the Heritage Fund.

The fund is a 9% contribution from Ghana's petroleum revenue receipts and can only be touched after at least 15 years as stipulated in the Petroleum Revenue Management Act.

The largely social-media driven debate appeared to suggest the move to use the Heritage Fund is imprudent while other sections quipped that the future is now hence the fund should be used.

Finance minister Ken Ofori-Atta has moved to calm waters stating the $286m Heritage Fund will not be touched to foot a GHC.26billion social intervention bill. Government has also pointed out that the Senior Minister was only floating a suggestion.

But discussing the controversy on Joy News' political analysis program, Newsfile Saturday, Executive Director of ISODEC Dr. Steve Manteaw has suggested to government that a fresh tax for "good and feasible' policy of free education is not out of place.

He said weaker economies like Ugandan had a $12billion economy when it rolled out free SHS 10 years ago. Ghana's economy is $37billion and therefore cannot use funding challenges as an excuse.

"What stops us from taxing our $37billion to make this happen?" he said.

He said government needs to re-align spending priorities to find the money for the intervention.

Analysing missed opportunities to make and save money, Dr. Steve Manteaw said oil giants like EO group and Saber Oil got away with the payment of a potential $70million in revenue because of loopholes in the tax laws.

"There was inconsistency in the petroleum tax law and the general tax law. EO group was the first to sell. We were not able to tax it. A year later Saber Oil sells and gets away with the non-payment"

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