Dr Eric Oduro Osae, a Local Government expert, has called on government to capitalize on the African Continental Free Trade Area According to him, this will enable the country discover new avenues of raising domestic resources to offset the financing gap.
He further noted that the free trade area has the capabilities of mitigating the effects of Covid-19 pandemic. Additionally, Dr. Osae explained that deepening intra-African trade and accelerating the post-pandemic economic recovery can help achieve that.
This is because, over the long-term, he explained it will play a signifcant role in “building greater resilience against future shocks”. To this end, Ghana must adopt medium to long-term fiscal policies towards economic and fiscal recovery
To achieve this, Dr. Osae suggested a restoration of public finances in a fair and sustainable manner to boost resources. This, he noted, will lead to reduce inequalities and promote development.
“Since competitiveness is key under the AfCFTA with the imposition of new taxes and levies; let us take steps to provide adequate support measures to make local businesses competitive”.
Dr Osae further urged government to avoid the imposition of taxes builds up as citizens detested the practice. According to him, deluge of taxes could potentially promote evasion and slow down demand.
Refrain from tax imposition
Additionally, Dr. Osae tasked government to implement measures to minimize and prevent price hikes through the imposition of new taxes and levies.
He further suggested that the government must rather put in adequate measures to ensure compliance with payment of taxes.
Justifying this he stated that ordinarily, ensuring compliance comes before increasing taxes.
“However, with our current situation we have no option than to do both concurrently if we want to rake in more taxes as expected”.
Buttressing on the need for transparency, Dr. Osae noted that authorities must ensure that the process of paying taxes is less cumbersome. According to him, this will help improve collection and mobilization.
Negotiations on AfCFTA near completion
Meanwhile, Director of Services at the African Continental Free Trade Secretariat, Emily Mboru-Ndoria has disclosed that the outstanding rules will be completed this year. This also includes the protocol on trade in goods and services
“Differences in interests for various member countries of the African Union has been a major challenge for the finalization of outstanding rules and negotiations for the continental free trade agreement.
“The development, although under control, can push back the objective of having a common Customs Union as Africa.
In spite of the pervading challenges with negotiations, Madam Mboru-Ndoria opined that work is well underway to get everyone on board.
“You know the size of an SME in South Africa may not be the same as Niger or Ghana so everyone is trying to fight their interest to ensure that they get the best.
“We are however working with every member country so that we get everyone on the same level”.
The Technical Director at the Ministry of Trade and Industry, Anthony Nyame Baafi also revealed that Ghana is working together with the African Union to use all channels available to address their concerns.
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