George Ankomah, the Lead Tax and Regulatory Partner at Deloitte-Ghana, warns that Ghana passing multiple taxes will not guarantee approval for the $3 billion IMF cash.
This comes on the back of Parliament March 31, 2023 through a Majority decision has passed three new taxes which is to generate approximately GH¢4 billion per year to supplement domestic revenue.
These are Income Tax Amendment Bill, Excise Duty Amendment Bill, and Growth and Sustainability Amendment Bill.
Speaking on the Morning Starr with Francis Abban Monday April 3, 2023, Mr. Ankomah indicated that the government will have to put in more efforts on reviving the economy rather than the passage of new taxes.
He emphasized that there underlying factors the government must meet and demonstrate in order to get the approval of the IMF deal.
“We have not put forth a hundred percent all, what the IMF is asking for on what we need to do to have an IMF deal. You know the discussion around the debt exchange was very topical. We are taught after signing that then we are on course. It happened that after that we realized that there is something more that needs to be done and so that is where we are in terms of the taxes.
“We are told that once these taxes are passed then we will be able to secure an IMF deal. The IMF to the best of my understanding is not necessarily asking for a tax bill to be passed but the government demonstrates plans of how it is going to recover from the state in which we are. In terms of sustainable economic growth and how we are going to do that and macroeconomic stability and how we are going to do that. So the government is of the view that some of these taxes that have been introduced should be one of the considerations for the IMF to see that we have made an effort to rake in more revenue as far as Ghana is concerned to meet their requirement as a condition,” Mr. Ankomah stated.