We need a clear revenue strategy – Mark Badu-Aboagye discusses potential risks of tax cuts

As discussions around potential tax cuts continue to dominate political discourse, Mark Badu-Aboagye, the CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), has raised concerns about the absence of a clear policy direction to generate revenue to offset the proposed reductions.

In a recent interview on Joy News’ PM Express, Business Edition, Badu-Aboagye warned that scrapping taxes without a viable strategy could lead to a significant revenue shortfall.

“In giving out all these promises of scrapping taxes, I haven’t heard a clear policy direction on how they are going to generate revenue,” he said.

“If taxes are removed without a strategy, we risk creating revenue holes that will push the government to resort to borrowing.”

His caution comes at a time when various political parties are suggesting tax cuts as a means to ease the burden on businesses and individuals.

However, Badu-Aboagye emphasized that without a well-thought-out revenue-generating plan, these cuts could do more harm than good.

“For me, the taxes that are already there, if implemented well, and if businesses are supported to grow, compliance will increase, and we’ll generate a lot of revenue,” he argued.

One of his key concerns is the lack of support for businesses that could contribute to the nation’s revenue base. Citing a recent interaction between the Ghana Revenue Authority (GRA) and a company, Badu-Aboagye highlighted the negative impact of poor policies on businesses.

“GRA went to this company and asked why their tax revenue had gone down.

The company told them, ‘This is what you have done to us,’” he explained. “Now, they’ve laid off workers, and the revenue that should have come from 27,000 tons of production is gone.”

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