The Whining Of The Citizenry

The announcement of the sales tax and an increase in the income tax for persons within a certain salary bracket have provoked a serious debate in the media by the minority and some business persons. Most of the mainstream media reported that the Finance Minister swerved the minority as they expected an increase in the VAT. The minority has started its usual heckling and partisan analysis of the intentions of the government. The people of this country are obliged to pay taxes because taxes are statutory requirements. The government on the other hand provides essential and other services to the citizens from the taxes and other incomes generated for the state.

Once the members of the state expect more of these services to be provided sometimes freely, the payment of the sales and other taxes must be embraced by all and sundry involved in the development process. The development of a state is a two-sided process where the state and its people both have roles to play. While the state provides electricity, water, roads, schools, gas, petroleum products and other services sometimes at subsidised prices, the members have the responsibility to pay for them in taxes without whining.

The analysis of the announcements have began seriously by business persons. The likelihood of businessmen and women shifting the entire sales tax burden to the final consumers is high. The percentage that will be borne by the final consumer will be higher than that of the business persons as a result of the technicalities of the new form of tax being proposed. The new form of tax for a majority of the consumers is to be calculated on the final transactions rather than the value addition.

The tax authorities need to educate the business men and women on the proportion to be borne by the business units and the final consumers. There will unquestionably be an increase in the prices of goods and services. If goods and services are increased, the citizenry will suffer the burden of the the taxes imposed on these goods and services. The debate by the minority that focuses on the calculations of the taxes is only in the interest of the consumer and not taking into consideration the revenue needs of the state. Whether VAT or taxes on final transactions are used to enhance the revenue generation of the state and argument its financial resources in executing projects and programmes, payment of taxes should not be evaded. The consumers and the business men and women need to bear the new form of taxes that have been proposed to be introduced without needfully shifting everything to the consumers.

The purpose of the taxes proposed have clearly been stated: to support the ever-ailing NHIS and supporting the GETFUND which is concerned with the delivery of educational services. These two institutions are key and the use of tax payers money to support them run effectively is right. The people of Ghana have embraced the concept of free SHS without most of them questioning the source of the income for this policy. The people of Ghana must prepare to accept these proposals once the concept of free SHS have equally been embraced. The health sector needs to run and without it, the risk people will be exposed to will be enormous.

The reasons for the citizens of this country to whine are those related to financial malfeasance, corruption, embezzlement of funds and inefficiencies in the procurement of assets by the authorities manning the affairs of the NHIS and other state institutions.. Every audit undertaken by the Auditor General’s Department reveals acts of financial malfeasance. There are reports about diversions of the medicine and drugs belonging to the NHIA by the health personnel in charge of that sector.

The changeless state of corruption in most of the institutions that benefit from the taxes of the state accumulate is evidence for the citizens to whine. Let’s accept the new proposal of taxes and begin to whine and whine until the negative acts by these persons in the state institutions are stopped. The whining of the citizenry to curb activities of corruption, embezzlement of funds, financial malfeasance in managing the tax income of the state and its people is proper. Our whining is not in paying taxes. Our whining is in the use of the money collected and managed on our behalf.

Emmanuel Kwabena Wucharey.