Government is not likely to introduce new taxes or levies in the Mid-Year Review and Supplementary Estimate, a member of the Finance Committee in Parliament, Stephen Amoah has said.
According to him, government will adopt a pragmatic mid-term policies to stimulate production and growth in support of the economic recovery process, rather than deepen the fiscal consolidation policy. The country’s exports has rebounded with oil price selling at pre-covid levels, whilst economic activity is gradually picking-up.
Stephen Amoah who is the immediate past Chief Executive of MASLOC tells Joy Business government will prioritise job creation.
“One will have opted for taxes because of the debt to GDP ratio [76.6% as of May 2020] – our debt levels – but then considering the existing hardship – the Covid-19 economy – that has slowed productivity, that has slowed trading activities, that has slowed industrial activities, one would have also said that if you want to tax again, you will deepen the hardship.”
“That’s why I’m saying that I’m expecting pragmatic Mid-Term policies and I think my government will not make any serious fiscal changes in terms of our taxes”, he stressed.
Continuing, Mr. Amoah said “government will rather look into areas that will create more jobs and also look into strengthening production to generate taxes rather than going straight to also impose additional taxes on the people. I don’t think my government will do that.”
Meanwhile, expectations are high as some businesses and associations want a budget and economic policy that will create more opportunities for them post covid-19.
Job creation, improving revenue mobilization and instituting programmes aimed at revitalizing the economy will be the main highlight of the Mid-Year Review of the Budget Statement and Economic Policy