Simplify tax laws to yield the needed revenue - Analyst

Fiscal policy specialist with Oxfam Ghana, Dr Alex Ampaabeng has asked the government to simplify tax laws to enable efficient compliance.

Dr Ampaabeng said with the simplification of the laws, taxpayers will easily understand them and comply.

In an interview with Citi FM on the sidelines of a Forum organised by Oxfam, Dr. Alex Ampaabeng said a multi-pronged strategy to encourage tax compliance including the simplification of tax payment should be high on government’s agenda.

“For effective tax compliance, the complexity of the tax laws should be simplified to the understanding of the taxpayer. You also have to make sure that the enforcement of tax laws is properly done across the board. The subject of revenue usage should be transparent for all. If Ghanaians are not confident the taxes they pay will be used judiciously they will not support the system.”

The Chairman of Tax Justice Coalition Ghana Vitus Azeem also on tax mobilization explained that: “A fair tax system in Ghana should be such that people and institutions which earn more income pay more taxes.

Especially when you look at the corporate sector that needs reliable utilities and security to be productive, they should be paying their fair share of taxes. We’re not saying they should pay all, but it should be based on the incomes they are making.”

He also reminded corporate entities to apply international best practices when it comes to fulfilling their tax obligations.

“The world is a global village. What this means is that whatever best tax practices are utilized elsewhere should be replicated here in Ghana. This applies to the need for accurate, timely record keeping. This practice will ensure that we are tax responsible and will also prevent any contentions.,” he said.

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