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in Finance, Sub Top Stories2

Taxes imposition will hit the poor harder- Joe Jackson

M.Cby M.C
March 16, 2021
Reading Time: 3 mins read
An Economist, Joe Jackson has disclosed that the deluge of taxes proposed by government in the 2021 budget presentation will affect the “poor harder”. He explained that this will more telling as this category of people are the major purchasers of consumables.

An Economist, Joe Jackson has disclosed that the deluge of taxes proposed by government in the 2021 budget presentation will affect the “poor harder”. He explained that this will more telling as this category of people are the major purchasers of consumables.

He said that taxes and levies applied will appreciably affect their personal economies.

“When you impose a consumption tax, it hits the poor harder than it hits the rich. Because as a percentage of my income, fuel does not constitute that importance. But when you go down the bottom of the ladder, transportation to work and back is a major headache. Every cedi increase causes you [the poor] more trouble. And it affects everything and everybody– the cost of food, the cost of drinks, everything”.

Mr. Jackson singled out the proposed 30 pesewas increment of fuel prices. This, he asserts will affect the price of goods and services. He however, called for the alternative practice of targeting the rich with such taxes.

“They [government] should tax wealth and not VAT”.

Petroleum taxes unjustifiable

Dr. Charles Wereko-Brobby has earlier disclosed that the petroleum tax proposed by government is unjustifiable.   

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He said the sector has become an easy avenue for the government to rake in money.

“It is totally unjustified… There is no justification. It [petroleum products] just happens to be a low-hanging fruit that you can just slap anything on”.

Mr. Wireko Brobbey also noted that special taxes for specific purposes should be scrapped to offer petroleum customers some relief.

“20 years ago, President Kufuor introduced what he called the Refinery Recovery levy. That was supposed to last for four years. But 20 years on, it is still here, now as the energy sector recovery levy.  In 2015, oil prices collapsed and Mahama government instead of reducing prices according to the formula said our revenues are down because the datum prices of oil have gone down, so we need to crawl back revenue. So there was a 2-year special petroleum levy. I think 8 years on, it is still on. I will suggest that if these two temporary taxes which were meant to address specific issues were removed, that alone will reduce taxes”.

Wireko Brobbey
COVID-19 blamed for poor economic performance

Meanwhile, Minority leader, Haruna Iddrisu, has bludgeoned President Akufo-Addo’s government for excessively borrowing to stabilize the country.

Touching on Ghana’s current debt stock at GHS291.6 billion as of January 2021, he highlighted the consequence on the borrowing.

According to him, the government cannot solely blame the COVID-19 for its poor management of the economy.

“The record is that President Akufo-Addo has increased our debt stock from GHS120 billion to GHS291 billion representing some 76% of debt to GDP. He chose conveniently to blame COVID-19 for the poor performance of the economy, and yet he is seeking to recover from COVID-19”.

Haruna Iddrisu

Govt’s “silence” on taxation in the 2020 Mid-year budget is worrying – Joe Jackson

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Tags: cost of borrowingHaruna IddrisuJoe JacnksonPetroleum taxesPresident Akufo-Addo
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United Bank for Africa Posts Industry’s Lowest Bad Loan Ratio United Bank for Africa Ghana has delivered one of the most remarkable performances in Ghana’s banking industry, emerging with the lowest non-performing loan ratio in the sector and setting a new benchmark for prudent lending, asset quality, and corporate discipline. At a time when banks across emerging markets continue to battle rising credit risks, economic uncertainty, and pressure on asset quality, UBA Ghana’s latest financial performance has become a standout success story. The bank’s Non-Performing Loan ratio, which stood at 29.40 percent in 2021, has dropped sharply to an impressive 2.11 percent in 2025. This exceptional improvement places the bank well ahead of regulatory expectations and significantly below the target set by the Bank of Ghana, which requires banks to maintain bad loan ratios below 10 percent by June 2026. The numbers tell a powerful story of strategic execution, disciplined lending, and a leadership team committed to sustainable growth. Bad Loans Fall Dramatically The bank’s total non-performing loans have also seen a dramatic reduction over the four-year period. From GH¢334 million recorded in 2021, the figure has now dropped to just GH¢28 million in 2025. Industry analysts say this sharp decline reflects a deliberate and aggressive approach to loan portfolio management, one that prioritizes risk identification, credit discipline, and rapid intervention. For many financial observers, this is not merely a statistical improvement. It is evidence of a bank that has transformed its internal credit systems and strengthened its ability to manage lending risk in a highly competitive market. UBA Ghana’s performance is being viewed as a model for other financial institutions seeking to improve balance sheet quality while still expanding lending activities. Strong Risk Culture Drives Results According to Kenneth Amponsah, the achievement did not happen overnight. He explained that the bank adopted a consistent and structured approach to managing credit risk across every stage of the lending cycle. He noted that the improvement in the bank’s loan quality was the result of stronger lending standards, improved loan screening procedures, tighter monitoring systems, and faster recovery mechanisms. The bank’s risk management strategy focuses on ensuring quality at the point of loan origination while maintaining strict oversight throughout the life of each facility. This includes strategic portfolio planning, efficient approval processes, proper documentation, collateral verification, real-time account monitoring, and proactive loan recovery. Banking experts say such a full-cycle approach is critical in today’s economic environment, where loan defaults can quickly erode capital and investor confidence. Recovery Efforts Yield Strong Returns One of the strongest drivers behind the bank’s improved asset quality has been its recovery operations. UBA Ghana has significantly strengthened its debt recovery framework, resulting in consistent gains over the years. In 2025 alone, loan recoveries reached an impressive GH¢168 million, highlighting the effectiveness of the bank’s recovery teams and internal enforcement systems. This strong recovery performance has helped the bank clean up its balance sheet while improving liquidity and strengthening capital resilience. Analysts believe the recovery figures also demonstrate the bank’s ability to engage customers proactively while maintaining professional relationships and ensuring compliance. Leadership Applauds Team Performance Commenting on the achievement, Bernard Gyebi praised the collective effort of the bank’s staff, management, and board. He said the milestone reflects the dedication and discipline of Relationship Managers, Risk teams, Executive Management, and Board members who have all contributed to building a resilient institution. According to him, UBA Ghana remains focused on balancing business growth with sound risk management practices. He emphasized that the bank is intentional about creating long-term value for shareholders, customers, and regulators while maintaining high standards of governance and accountability. His remarks underline the bank’s broader strategy of building a strong institution capable of supporting businesses and contributing to national economic growth. Setting the Pace for Ghana’s Banking Sector Industry observers believe UBA Ghana’s latest achievement reflects broader improvements within Ghana’s banking sector, which has undergone major reforms in recent years. However, they note that UBA Ghana’s performance stands out because of the speed, consistency, and scale of its transformation. 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