News

Tax Justice Coalition urges Gov’t to adopt progressive tax system

• By EDMOND GYEBI
• June 01, 2019
• 27

The Brong Ahafo Chapter of the Tax Justice Coalition Ghana, has called on Government to stop given irrelevant tax incentives to multi-national companies and adopt an improved tax system that supports the socially excluded and micro-enterprises.

ActionAid in 2016 estimated that developing countries lose over US$150 billion a year from just one form of tax incentive – corporate income tax exemptions, or nearly US$3 billion each week, and Ghana loses US$ 2.27 billion annually.

According to the Coalition, promoting progressive tax for inclusive development has implication for reducing inequality in Ghana. This is because a progressive tax regime is a proven tool for redistributing income from upper class and large businesses to lower income earners and micro-businesses. 

The coalition also asked government to stop the reckless borrowing which had had no positive impact on the citizens but only increasing the debt burden of the country.

The Brong-Ahafo Regional Coordinator of the Coalition, Raphael Godlove Ahenu Jnr, made the call at a day’s advocacy and networking training workshop for the members of the coalition in Sunyani with support from ActionAid Ghana.

The purpose of the training was to develop an understanding of the members on the principles of tax justice to help them to understand the various unfair tax practices and how this lays greater burden on the poor and the marginalized.
 
 

“Government has signed the United Nations human rights convention to agree to the Economic, Social and Cultural Rights that all citizens of the country have, and how the government must fulfil them. In this commitment the Government agreed to an obligation to have the “maximum available resources” to provide these economic, social and cultural rights to its people”.

The Brong Ahafo Regional Programmes Manager of ActionAid Ghana, expressed his delight in the strides made by the Coalition over the period in addressing tax issues in the Region. 

He mentioned that ActionAid Ghana is committed to the course of the Coalition and would always be available to offer both technical and financial support. 

He urged the leadership of the Coalition to always present their action plan to ActionAid. Adding, “Your activities should always be feasible so that it can be financed by the limited budget of ActionAid Ghana”. 

Participants at the workshop called on Civil Society Organisations (CSOs) to support Government in area of awareness creation on tax justice to avoid loses through corporate tax incentives and avoidance.

Kwame Afram Denkyire, a Programme of Officer of ActionAid, stressed the need for the coalition to mobilize more members in the three regions Bono, Bono East and Ahafo in order to put pressure on government to make changes in Ghana’s tax laws.

He called on all meaningful Ghanaians to join the Tax Justice Campaign to force government to review the irrelevant tax incentives given to companies.

Source: WatchGhana.Com