As Ghana prepares for the mid-year budget review, tax analysts are advising the government against introducing new taxes.

They cite existing economic pressures and the need to support businesses amid recovery efforts.

Under the International Monetary Fund (IMF) program, the government is focused on consolidating tax systems to sustain economic recovery without compromising fiscal stability.

Francis Timore Boi, a Tax Analyst, emphasized the importance of enhancing compliance with current tax measures rather than introducing additional taxes.

“The expectation is enhanced compliance measures to increase revenue from existing taxes. Some have called for removing certain taxes, like the COVID-19 levy, arguing its necessity has waned,” Boi stated in an interview with Citi Business News.

Boi acknowledged the significance of the COVID-19 levy’s revenue amidst fiscal commitments under the IMF program, suggesting its retention for revenue stability.

However, he cautioned against introducing new taxes, noting the recent implementation challenges with existing taxes, such as the 5% excise tax on plastics.

“Recent budgets have introduced several new taxes, with some facing industry resistance. Introducing new taxes at this juncture, especially with elections approaching, could negatively impact the business environment,” Boi warned.

Market watchers have echoed concerns, predicting challenges in imposing new taxes given the current economic burdens on businesses.

The government’s forthcoming mid-year budget review is anticipated to outline strategies for economic growth while navigating fiscal constraints and business sensitivities. Balancing revenue needs with economic sustainability remains a critical objective as Ghana progresses through its fiscal year.