No wonder Gabby became an advocate for government taxation
Gabby Asare Otchere-Darko’s new role as an advocate for government taxation is not surprising but admirable.
This is the view of the Executive Director of the Media Foundation for West Africa, MFWA, Sulemana Braimah.
Braimah posted in a December 13, 2021 tweet: “I’m just in awe of how suddenly Gabby Darko has become a government tax lawyer. But I’m not surprised.”
Gabby defended the government’s decision to impose the controversial e-tax contained in the 2022 budget as a viable means of generating revenue to run the government and improve infrastructure.
He posted two tweets on November 16: “Are you one of the less than 9% of Ghanaians who pay direct and regular taxes to support the country for the 30 million?
Followed by: “Are you willing to pay more (like double) for road tolls to help fix the roads or do you want them to be completely destroyed to facilitate traffic? “
Gabby’s tax tweets from November 26
The Reality of Ghana’s Debt Financing: Interest payments and indemnity payments alone amounted to GH ¢ 49.7 billion or 108.6% of total income and grants from January to September 2021 These 2 expenditure items have absorbed all the income collected last year! The unbearable case over the years aggravated by the Covid.
The prudent use of our taxes is what taxpayers want and deserve. Fact: The NPP government spends more of its revenues on social interventions than any government in Ghanaian history. In addition, only 8.2% of our 30 million inhabitants pay direct taxes. Togo’s tax / GDP ratio is 22.2%! Ghana is less than 13%!
Tax / GDP ratio and development: Guinea Bissau 10.3%, Chad 7.7%, South Africa 28.6%, France 46.2%, Germany 37.5%, United Kingdom 33.3%, Niger 14 , 4%, Liberia 11.9%, Greece 39.4%, Gambia 17.1%, Senegal 22%, Burkina Faso 18.1%, Côte d’Ivoire 17.4%, Guinea 13.3%, Namibia 30 , 1%, Togo 22.2%.
Just admiring the suddenness @GabbyDarko has become an advocate for government taxation. But I am not surprised.
– Sulemana Braimah (@sulemana) December 13, 2021
What Ofori-Atta said about a 1.75% levy on electronic transactions
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as mobile money transactions, remittances and other electronic transactions.
Fees and charges for government services were also increased by 15%.
The Minister of Finance explained, “It is becoming clear that there is enormous potential for increasing tax revenue by bringing into the tax bracket transactions that could be better defined as being undertaken in the informal economy.
“As such, the government charges an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inbound remittances, which will be charged to the sender, with the exception of incoming remittances, which will be the responsibility of the recipient.
“To preserve efforts to improve financial inclusion and protect vulnerable people, all transactions that total GH ¢ 100 or less per day, or around 3,000 per month, will be exempt from this levy,” Ofori-Atta revealed. .