Economist Professor Charles Ackah has warned that the new three key tax measures will end up pushing the economy into recession rather than aiding recovery.
This follows government’s claims that these new taxes are needed to turn the economy around.
But Professor Ackah stated that, there are clear examples showing that the economy is heading into difficulties even before the taxes are implemented.
Speaking to George Wiafe on PM Express, he entreated government to devise strategies to prevent crowding out of the private sector.
“Government must exercise great care in times like this to shape its fiscal policy to be consistent. This will strengthen the economy. I think some of the taxes introduced will end up frustrating businesses and end up frustrating government’s efforts at economic recovery and prolong recession,” he said.
Professor Ackah further indicated that, a call to cut down expenditure is not the best way to address Ghana’s economic challenges
He contends that there should be efficiency in government expenditure.
“We are not against tax revenue. People are calling for a cut in expenditure and again, I totally disagree because our expenditures are not that high. Rather, there’s wastage and what we must be calling for is efficiency in government expenditure”, he added.
The tax measures, according to government is part of efforts to meet the IMF’s criteria to qualify for a bailout.
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