Prof. Godfred Bokpin, Economist
An economist at the University of Ghana, Prof. Godfred Bokpin, has urged the government to shift its focus from taxing the income and salaries of low-income individuals to taxing high-net-worth individuals.
He believes that the ordinary Ghanaian is already impoverished, and thus taxing them places more pressure on their livelihoods and worsens their standard of living.
According to him, most wealthy individuals do not depend on their salaries or wages, as they have other sources of income that are not usually taxed directly.
“We are taxing income in terms of personal income tax, but high-net-worth individuals don’t actually live on salary or wages,” he was quoted as saying by myjoyonline.com.
The University of Ghana lecturer noted that the government must “develop a policy for the taxation of high-net-worth individuals, back it with a strategy, and then restructure the High Net Worth Office at the GRA.”
He further acknowledged the Ghana Revenue Authority’s (GRA) High Net Worth Office for its work in recent years, but noted that more needs to be done to ensure the wealthy pay their fair share of taxes.
Prof. Bokpin suggested that it should be “mandatory for all board members of state-owned enterprises and publicly listed companies to file their tax returns,” adding that this requirement could later be extended to other professionals like accountants, lawyers, and actors.
Prof. Bokpin also commented on the struggles of businesses in recent times, as Ghana’s economy is under intense pressure.
Additionally, he said that Ghana can recover more if it eliminates corruption and ensures efficiency, rather than heavily relying on taxation.
“Businesses are suffocating. This is a small open economy, but it is possible that one entity may be required to comply with maybe six or more different tax obligations in a fiscal year,” he said.
SSD/MA
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