Ghana’s tax system needs total overhaul – FABAG

The Chairman of the Food and Beverage Association of Ghana (FABAG), John Awuni, is advocating for a comprehensive reform in Ghana’s tax system.

Speaking on the Oxfam Tax Dialogue on Citi TV on Thursday, March 21, John Awuni, called for the elimination of certain taxes that adversely affect the average Ghanaian.

He emphasized the importance of reducing taxes, noting that lower taxes generally lead to higher compliance.

“My point is that the tax system must have a stimulating effect, once the private sector is doing well, what can you do with your tax system? You review it to be able to stimulate the necessary growth in the private sector. I think that our tax system in my opinion needs to be overhauled, it requires serious overhaul, and most of the tax handles have to be removed.

“Tax cuts in the economies have shown that there’s compliance when taxes are relatively lower. Our current tax levels are high, which makes it so unbearable for the ordinary consumer. We need to look at it clearly.”

Mr Awuni linked the high cost of living to corruption, urging the government to significantly cut taxes.

“The entire system in my opinion is corrupt, it is not only Ghana Revenue Authority, everywhere, all of us are corrupt. I’m saying so because there’s a strong correlation between the cost of living and corruption. We are looking at a situation where incomes are very low, yet things are very expensive.

“When the government wants to fight corruption, they must look at the situation where they can bring down the taxes so that things will be so affordable. And people will be able to comply, all of us are managers and we all are thinking about how we can survive the system. That is why everyone is trying to pass through everywhere to get what they want.”

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