The Presidential Advisor on the Economy and former Minister of Finance, Mr Seth Emmanuel Terkper, says Ghana must focus on the four pillars of general tax systems as key to revenue generation and economic growth.These are income tax, Value Added Tax (VAT), import duties, and excise tax.Mr Terkper said this on Wednesday at the launch of his 378-page book, titled "Value Added Tax in Africa-The Ghana Experience", by the Chief of Staff at the Office of the Vice President, Dr Alex Segbefia, in Accra on Wednesday.According to Mr Terkper, the introduction of new taxes in the forms of levies and the revamp of the country's tax system over the past years had created distortion with regard to revenue mobilisation."Between 2013 and 2016, we revamped all our tax systems and even separated the excise tax, but there have been some distortions.
Also, when we begin to introduce levies, we are mimicking one of those four taxes," Mr Terkper said."With the 20 or so taxes that we have introduced, the highest point of the revenue to GDP ratio remained 20:50 until 2022 and 2023 when it increased slightly above 15 per cent.
What this means is that for all these distortions, it never really boosted the tax regime," he added.For his part, Dr Segbefia, who represented the Vice President, Professor Naana Jane Opoku-Agyemang, described the author of the book as a remarkable gentleman who did not engage in regular politics although he was a politician, but executed his duties effectively based on defined principles, as a former Minister of Finance.Dr Segbefia advised members of the government to learn from the work of Mr Terkper to be able to discharge their duties effectively.The Chief of Staff at the Presidency, Mr Julius Debrah, urged the Ghana Revenue Authority (GRA) to intensify its sensitisation programmes on tax; especially in the private sector to ensure compliances."Coming from the private sector, collection of taxes are good, and without it, we cannot build the nation.
But sometimes, we have a bit of a challenge with the mode with which some of the operatives handle the private sector."Anytime there is a forum and we bring business people together, we seem to have a mission.