After back and forth arguments, both inside and outside Parliament, the Legislative House has, by a majority decision, passed the three critical revenue bills into law. They are the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill, 2022, the Ghana Revenue Authority Bill 2022 and the Income Tax Amendment Bill 2022.
When the new taxes finally become operational, they will rake in GH¢4 billion annually to help shore-up our domestic revenue mobilisation.
As expected, the Minority side of the House voted against the three bills. They had argued that if the bills were passed into law, it would exacerbate the already precarious economic situation in the country.
According to the Minority members, prices of goods and services would also go up when the Ghana Revenue Authority (GRA) starts imposing the new taxes on goods.
A number of organisations, including the Association of Ghana Industries (AGI), according to the Minority Leader, Dr. Cassiel Ato Forson, had petitioned his outfit to critically look at the three bills, because they would essentially increase their production costs, which they will also pass on to the consumer.
The government, on its part, also contended that without the passage of the three bills into law, it will be impossible to secure the Board Management Agreement with the International Monetary Fund (IMF) to subsequent release of $3billion to the government to help bring back confidence in the economy.
The IMF has given the government a number of conditions that must be fulfilled. Among these conditions are the restructuring of both our domestic and international debts, and also the mobilisation of enough domestic revenues.
Fortunately, the government was able to sort out the debt restructuring brouhaha, leaving the domestic revenue mobilisation conundrum to be solved. The Chronicle concedes that all the issues raised by the Minority and some industry players are genuine. If the new taxes are going to result in the escalation of prices, who, in his or her rightful senses will welcome them?
But much as these are genuine concerns, we must also look at the general health of our national economy, which has a huge deficit gap that must be filled. Previously, governments were borrowing to support the domestic revenue we generate, but because of the huge debt hanging on our necks, external creditors are no more prepared to help us.
Yes, the opposition is accusing the government of over indulging in borrowing, but whether the accusation is justifiable or not, the bottom line is that we have a huge deficit in the budget, which, if not closed, can crash the economy. This, in our opinion, is where the focus should be and not the usual politicking that will not help in solving the matter.
It is upon the basis of this that we think the passage of the three bills into law is welcome news, though we admit that it has negative strings attached to them.
When Greece, a developed nation, had similar challenges in the past, she resorted to draconian measures, which most of her citizens were not enthused about, but they had to swallow the bitter pill.
Today, as a result of those draconian measures, Greece’s economy has rebounded and the people are now enjoying the standard of life they used to enjoy in the past, before the economic turmoil. It is, therefore, our contention that these revenue measures that the Akufo-Addo government has adopted today may sound harsh, but in a few years to come, we will begin to see its positive impact on our lives.
We appeal to all Ghanaians to put their shoulders to the wheel and ensure that we achieve our objectives as a country for our betterment and that of generations yet unborn.
