By Savannah Pokuaah Duah
Governance expert Dr. Eric Oduro Osae has emphasised that the government cannot operate without taxes, stressing that taxation is vital for the sustainability of governance and public services.
Speaking on Current Agenda, a programme on GBC, Dr. Osae acknowledged that although the recent removal of certain taxes might reduce the cascading effect, the government must still identify alternative sources of revenue to sustain its operations.
“The cascading effect refers to the cumulative impact of taxes on goods and services, which can lead to increased costs for consumers,” he explained.
Dr. Osae further stated that while these tax reductions may offer some short-term relief to citizens, taxes remain indispensable to governance.
“Government cannot do without taxes,” he said. “We need to be clear to Ghanaians that governance requires taxes, and we need to find alternative sources of revenue to finance our activities.”
He highlighted that governance requires significant funding to implement developmental policies, provide public services, and ensure national stability.
Dr. Osae also addressed concerns about the effectiveness of the government’s economic recovery strategies. He noted that such policies require time to produce tangible results and that it is premature to judge their success.
“Policies do not mature almost immediately. It’s not sustainable to expect immediate results from economic policies. We need to give the government time to implement its policies and assess their impact,” he stated.
Dr. Osae recommended that a more accurate evaluation of the government’s economic measures be conducted when the 2026 budget is prepared and executed over a full year.
“Then we will be able to assess the impact of the government’s policies,” he added.
In the meantime, he welcomed the short-term benefits of reducing the cascading effect, cautioning that its success will depend on how businesses respond.
“Yes, the cascading effect would be reduced, and that is good news for citizens,” he said. “However, we need to ensure that producers and businesses do not pass on the costs to consumers.”
