The Bono regional chapter of the Tax Justice Coalition Ghana urges the government to take urgent measures to reduce tax incentives for companies in order to reduce the loss of income due to these tax incentives.
The coalition further called for tax incentives to be granted only after a thorough cost-benefit analysis, including an assessment of the impact on poor and vulnerable groups.
According to the Tax Justice Coalition, such an analysis should be the subject of public debate, scrutiny and parliamentary scrutiny.
Tax Justice Coalition Ghana’s Bono Regional Secretary Simon Asore made the requests during a media engagement in Sunyani.
Mr Asore said “it is unacceptable that Ghana is struggling to fund Free SHS and other programs when the country loses around $ 1.2 billion from tax incentives given to multinational companies.”
He said that a key way to raise additional resources is to increase tax revenue, and the way to do that is to reduce or eliminate tax incentives that many businesses, especially multinationals, enjoy.
This tax expenditure, he said, results in a massive loss of potential income that could be spent on improving education and other public services.
“If you look at our tax incentive laws, we’re so generous that we give businesses nearly 15 good years of tax holidays.
We, the Tax Justice Coalition, therefore urgently call on the government to reduce the tax incentives that are normally granted to companies only to attract foreign investment, ”he added.
Mr. Asore recommended the creation of a public policy framework for the granting of tax incentives based on clear rules that are transparently applied and subject to public and parliamentary scrutiny as well as the provision of annual expenditure declarations. that quantify the costs of tax incentives as a component of the national budget.