Economist, Professor Ebo Turkson, has urged government to move beyond using tax incentives to attract foreign investment.
He was speaking concerning government’s introduction of new tax measures to ramp up tax revenue as a means of getting an IMF board approval for a $3 billion bailout.
He noted that rather than introducing new taxes, the government could reverse its tax incentive measures instead to widen the tax net.
He explained that most investors are least enthused by the government’s tax incentives as they are more concerned about the economic environment the government creates for them to run their business smoothly.
Speaking on JoyNews’ PM Express, he said that, when government successfully creates a conducive environment for businesses, foreign investment will troop in without the tax incentive.
“Ghana should move beyond using tax incentives to attract investment. When you ask those who bring in investments they’ll tell you that the least of the incentives is the tax incentives that we give them. They need a business environment that is conducive, so don’t give them any tax exemptions. Give them a business environment that is conducive for them to come and produce here and tax them, they’ll pay,” he said.
The government failed to pass their tax measures following an impasse between the Minority and Majority sides of parliament concerning the course of proceedings.
The CEO of the Ghana Chamber of Commerce and Industry, Mark Badu Aboagye says the government should withdraw the tax measures from the house to allow for wider consultation as the taxes if passed could collapse businesses and increase unemployment.
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