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Review tax holidays to companies- ActionAid tells government

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ActionAid Ghana, (AAG), says taxation is the most stable and dependable source of resource mobilization for the provision of the needed public services and government must review its tax incentives policies to improve upon revenue generation.

Action Aid Upper West Regional Monitoring and Evaluation Officer, Ali Malik Gbene, in panel discussion on thematic issues of “tax power campaign” said, Ghana loses over 2.4 billion Ghana cedis every year to needless tax incentives granted to corporate organisations. This, he noted, is equivalent to about twice the entire budget for Ghana Health Service in 2013 and about half the education budget.

In ActionAid’s quest to push government to fulfil its human rights obligations and provide gender responsive public service, it has implemented a “Tax Power Campaign”.

The advocacy is aimed at discouraging government from offering what it described as harmful tax incentives to Corporate bodies and Investors so as to boost domestic resource mobilization.

Mr. Gbene, said Ghana is blessed with all the requisite resources that it needs for development but has challenges in revenue mobilization.

Mr. Gbene indicated that AAG is working with Activista Movement and seeking to join hands with tax Justice campaigners and other Civil Society Organisations, (CSOs’), to demand tax justice that will bring efficient domestic resource mobilization, accountability in public resource distribution and prudent economic management.

Executive Director for Community Development Alliance, (CDA), Salifu Issifu Kanton and a tax justice campaigner asked Ghanaians to support the move in order to ensure that tax system work well in the country.

Mr. Kanton said the major challenge confronting the country’s revenue mobilization is the unnecessary tax exemptions policies by Ghana Revenue Authority and government.

He said 2017/2019 report from the Auditor General showed that Ghana lost about 3 billion Ghana Cedis due to the tax holidays to companies.

The tax Campaigner, Mr. Kanton registered his displeasure about how loan contracted for development projects are being spent on contractors from the same country with the huge sum of tax exemptions.

A Youth Activist from Activista Ghana, Bakuna Salifu Rasheed called on government to empower young by creating employment avenues for them to realize their potentials.

Story filed by Dennis Bebane

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