As the 2024 Budget presentation approachess, businesses are advocating for a review of the government’s flagship initiative, the Free Senior High School policy, and a reduction in the tax burden on business enterprises.
In a recent KPMG Budget Survey, businesses suggested that the Free SHS policy should be restructured to allow financially capable parents to contribute to the funding of SHS education while still ensuring access for underprivileged students.
Despite the implementation of the double-track system, boarding facilities in schools remain overcrowded due to inadequate infrastructural development over the past four decades.
Honorable Kofi Adams, Member of Parliament for Buem Constituency, has expressed his support for these calls, emphasizing the need for a critical review of the policy.
“It had now dawned on everyone that when a call was suggested when very well-known educationists were all calling for a review and they were not listening; at that time, the review was equated to canceling.”
Kofi Adams, Member of Parliament for Buem Constituency
Adams noted, however, that the recent silence of the public on the policy is primarily due to the government’s strategic approach to address immediate concerns, primarily related to the provision of meals, albeit due to the neglect of infrastructure.
Adams urged the government to revisit the GETFUND to secure the necessary funds for expanding secondary school infrastructure. He stressed the importance of reallocating financial resources to infrastructure development rather than daily operational expenses.
He however acknowledged that the infrastructural challenge has persisted across multiple administrations,
“It was compounded when in 2018, the Daakye Boand was floated extensively to pay for some of these debts that have accrued in that area. The monies were collected, the bonds were raised but the contractors were not paid. So even those who have money to finish the infrastructure are now looking those things up; either at the basic level or the secondary level. Schools have not been allowed access to those facilities.
“I saw one in the upper east region where a contractor went with keys to lock up a school because he has not been paid. Meanwhile, huge somes had been collected in the name of that and you were supposed to use GETfund proceeds that come yearly to be servicing those bonds.”
Kofi Adams, Member of Parliament for Buem Constituency
The parliamentarian urged the government to swiftly address these issues to ensure that funds are available, effectively monitored, and allocated for their intended purposes.
Businesses Call For Tax Reductions
Additionally, the business community identified several taxes that are impeding their operations in Ghana, including the E-levy and COVID-19 taxes. The survey revealed that 76% of respondents considered the E-levy burdensome, 68% viewed COVID-19 taxes as problematic, 68% were concerned about import tariffs, 2% cited the petroleum levy, and 51% pointed to the growth and sustainability levy.
Hon. Kofi Adams criticized the government for imposing these taxes, contrary to its promise to shift focus from taxation to productivity.
“[Government] has now introduced all manner of obnoxious taxes, including the growth and sustainability tax, which taxes companies and institutions on monies they have made before tax. You tax them on the gross before you even apply other taxes.”
Kofi Adams, Member of Parliament for Buem Constituency
“If this is not antigrowth, if this is not anti-business, this will not shut a lot of business up, what more will do it?”, he added.
Adams applauded the business community’s call for tax relief and hoped that the government would pay heed to their plea.
Moreover, businesses appealed for a more simplified business registration processes to facilitate their operations.
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