Expert calls on gov’t to review tax incentive policy

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Fiscal policy stakeholders have called for a review in the tax incentive policy as it puts a burden on the nation’s revenue mobilization efforts.

Tax expert, Abdallah Ali Nakyea, has called for a review of the laws in the country as it serves as guidelines for various regulators.

Mr Ali Nakyea suggested that the government adopt an annual tax expenditure report.

‘‘Government together with the relevant authorities must undertake a review of tax expenditure in the country, with a view of removing incentives which have not benefitted the country in any way. This can be attained by the production of a tax expenditure report annually as part of the annual budget process,’’ he said.

He was speaking at a high-level dialogue on tax expenditure in Ghana, organized by the Economic Governance Platform.

According to him, tax expenditures formed 5.2% of the nation’s GDP in 2017 alone.

He said, “Parliament must be concerned with the number of exemptions it agrees to give out having carried cost-benefit analyses.’’

Also speaking on the matter, governance expert Dr Eric Oduro Osae emphasized that laws on tax in the mining sector must be reviewed as the sector has so much potential for generating revenue for the country.

He said, ‘‘If we can pass what we call an unconscionable contract review amendment act, which will give the government the opportunity to review all minerals and mining agreements that seem questionable.”

Dr Oduro Osae added, “The stability clause arrangement sometimes prevents the government from reviewing them. Such incentives could be generated as income for the nation.”

 Source: JoyBusiness

 

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