Flagbearer of the Convention People’s Party (CPP) in the 2016 general election, Ivor Greestreet, has noted that the recent 50% increase in communication tax will hurt the already harsh economic conditions of Ghanaians.
“Strategic Conversations held with a number of individuals and small local businesses this past week has confirmed my belief that the recent 50% increase in the communication/talk tax is going to really hurt and tighten the screws on already harsh economic conditions,” Mr. Greenstreet stated on his Facebook Timeline.
He disclosed that, last year, tax revenue collected from consumers for using communication services in the country reached ¢420 million, representing an increase of 27.7 percent, noting that, “The sector is clearly a vibrant and growing one. The amount generated from the communications service tax (CST) was 4.56 percent more than the projected ¢401.8 million in the 2018 mid-year budget.”
While emphasizing on the importance of taxation to the development of the country and the creation of jobs, he suggested the gradual as against the sudden increment approach to raising taxes.
“We all know taxes are important but surely supporting this sector to be more vibrant and thereby create more needed jobs through the activities of local entrepreneurs is more important. Government could then use the gradual increase in revenue to carry out its objectives of fighting cyber-crime, protecting users of information technology, combat money laundering and other financial crimes,“ he stated.
He lamented that cost of living and doing business was already high, thus government should rather abolish tax holidays for foreign companies.
“Cost of living and business is already too high. Government should rather abolish tax holidays for foreign companies and earn more from the super-exploitation of our natural resources of gold/oil etc. by multi nationals who take the money abroad.”
Compiled by Ruth Abla Adjorlolo