Running mate for flagbearer of the opposition New Patriotic Party (NPP), Nana Akufo Addo says high taxes which have been slapped on businesses in the country are “hurting”.
Dr Mahamudu Bawumia, who believes the economy is already in distress, said the steep nature of Ghanaian taxes make it difficult for entrepreneurs and businesses in the country to expand and reach their full potential.
Speaking on Joy FM’s Super Morning Show Wednesday, he insisted that the Mahama led government cannot “overtax businesses, kill them” and expect them to survive at the same time.
“The tax issue is a major issue because if you are so fixated on revenue, you’ll essentially end up hurting your production. If you go back into history, and you study the economic history of the US, Germany, England, all of them have used the tax policy to encourage production. Then you have a government where you have cutlasses being taxed, condoms being taxed.
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“Today you have an unbelievable situation in Ghana where businesses are out on strike; businesses, which should be selling, are out on strike. Why are they on strike? Because they’ve been overburdened by taxes! And if you don’t take care, you’d be chasing the tax revenue and killing businesses and when you kill businesses, it means you are causing unemployment and, so… this is why Nana Akufo-Addo is saying we need to mobilise financial resources.
“So, why are you going to be imposing VAT on financial services? It doesn’t make sense in a country which has got a very large unbanked population and we want people to bank” he noted.
According to the 2016 vice presidential candidate, there is very little confidence in the economy but the NPP led by Nana Akufo Addo if elected into power will bring back confidence in Ghana’s economy.
Dr. Bawumia underscored the need to create an environment for businesses to grow, “If we want businesses to survive and to thrive”.
He accused the NDC government of only being interested in borrowing but not using them for their intended purposes, adding that the depreciation of the cedi undermines the actual value of what has been borrowed.
“The value of the money at the time it was borrowed should have been able to complete certain projects. If you borrow a billion in a year, I want to see a project worth a billion” he maintained.
Asked what new ideas the NPP will bring on board if it comes to power, Dr. Bawumia said “We will change those particular policies to suit the economy. We are going to have to grow this economy and put in more revenue.”
He called on Ghanaians to hold the NDC accountable for every pesewa borrowed.
