By: Ashiadey Dotse
The Former Member of Parliament for Amenfi Central, Peter Yaw Kwakye-Ackah, says the government’s tax cuts announced in the 2026 Budget will increase consumption, stimulate business growth, and expand the economy.
Speaking on GTV’s Current Agenda Show on Saturday November 15, 2025, the former MP said putting more money into the pockets of Ghanaians is a smart strategy because it encourages people to spend, which then pushes businesses to produce more goods and services.
Mr. Kwakye-Ackah explained that although the government may initially lose some revenue due to the removal of taxes such as withholding tax, betting tax, emission tax, and VAT on motor vehicle insurance, the long-term effect will be positive. He noted that when individuals have more money to spend, businesses grow and end up paying more indirect taxes to the government.
He also shared a personal example, saying the scrapping of certain taxes had reduced the cost of clearing imported vehicles. According to him, such reductions help importers, boost trade activities, and support overall economic expansion.
The MP highlighted improvements in key economic indicators, stating that the exchange rate has improved, the price of fuel has stabilised, and inflation has dropped from 23.5% to 8%, all of which he believes reflect the impact of the government’s policies.
He acknowledged concerns that the reduction in inflation has not significantly lowered prices of goods on the market but explained that expecting prices to fall sharply could lead to deflation, which is dangerous for the economy. He stressed that maintaining stable prices while inflation drops is still a positive sign.
Mr. Kwakye-Ackah added that Ghana has recorded a rise in export earnings, showing that the economy is responding to recent reforms.
He urged the public to appreciate the gradual improvements, saying stable prices, lower inflation, and increased spending power will help the economy grow stronger in the coming months.
