The Institute of Statistical, Social and Economic Research (ISSER) has stated that government would have to take some tough measures in reducing expenditure while it increases revenue.
According to ISSER, government is currently constraint to borrow externally, hence must derive innovative means to encourage the private sector in participating in the one district one factory policy.
Speaking to Citi Business News, at a post analysis forum of the 2017 budget, the Head of Economics Division at ISSER, Dr. Charlse Ackah urged the private sector to adjust and pay the relevant taxes to help generate revenue.
“We are asking that government should slow down the appetite for borrowing, what that will mean is that we all have to be ready to adjust and to pay some cost,” he said, adding that “That means we need to be ready to pay more taxes”.
Dr. Ackah stated that government must engage all relevant stakeholders in the revenue generation pattern to respond positively to the tax cuts in the 2017 budget by filing their taxes appropriately.
After stressing the need to broaden the tax base, Dr. Ackah maintained that it will be very important for government to devise innovative means in raising revenue.
He explained that such a move will also stimulate economic activities to increase aggregate output.
He pointed out for example that the large informal sector provides a perfect opportunity for government to grow the private sector and access revenue.
“Government must be innovative to broaden the tax base. There are a chunk of the Ghanaian population that are not paying taxes but they are doing genuine businesses, because they have not found innovative way of taxing the large informal sector and self-employed. We believe that this will expand the tax net and it will benefit the nation,” he said.
By: Lawrence Segbefia/citibusinessnews.com/Ghana