Mr. Seth Terkper, a former Finance Minister, has called for reforms in the country’s taxation system by establishing a domestic tax scheme.

Mr Terkper stated that the government should “institute domestic scheme to reform tax system to rope various sectors within the economy , especially the service sector in.”

“The introduction of this domestic tax scheme will help relevant bodies track and identify non-taxpayers as well as create a unified tax collection base for the country.”
Mr. Seth Terkper

According to him, taxes play an important role in building a country’s economy, hence, the need for the government to increase its equity drive to help rake in revenue.

“Taxation is about equity. So, there’s some merit in that. You’re here and you’re paying taxes, you don’t have the option of filing. Those who are in the semi-formal, have a location, you know them, that’s why the location GPS thing is good. GRA will have them in their database and they’ll use that to now identify.”
Mr. Seth Terkper

The former minister indicated that the service sector is a naturally growing sector in the economy and as such, when there is a reform, it will include them in the tax net.

“…Which sectors are growing? The service sector is naturally growing, but are they in the tax net? So, you begin to bring them into the tax next, first to make them also pay the current income tax on their profits, that when they go and buy, you inspect their VAT invoices.

…That is why like Ghana Customs Integrated System (ICUMS), for the customs entry point, we need a domestic tax system that is automated. So, once you’re captured, they create their database.”
Mr. Seth Terkper

Government Mismanaged the Economy

Seth Terkper is of the view that the NPP government could have managed the country’s economy better than it has done, given the revenues generated during their tenure.

The former finance minister under the erstwhile President John Mahama’s administration, explained that with the kind of resources available to the government, he believes the economy should have been well managed amid the COVID-19 pandemic.

“Definitely [it could have been better], coming in 2017, the first obvious one was the additional oil fields …crude oil prices recover that’s a bonanza; which should have been managed well. From about 70,000 barrels within two years to nearly 200,000 barrels with an additional increase. Could we have put money into the buffers that are dependent…the Petroleum Revenue Management Act (PRMA)…so could it have been better? Definitely!”
Mr. Seth Terkper

Seth Terkper noted that in three years, the current NPP administration has received more revenue from the country’s oil than the past NDC administration under the late Atta-Mills and John Mahama put together. This he noted could be judiciously used to benefit the country.

However, the Former Finance Minister, iterated that Ghana’s economy may collapse if government does not consider prudent measures to salvage the situation.

Recently, he indicated that the economy is nose diving and needs urgent attention. “We’re gradually going, and we have gone HIPC before. So, HIPC is a good example for us; That is if your borrowing becomes unsustainable.”