GHC99.5 billion revenue target overly ambitious

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Director, ISSER, Prof. Peter Quartey Director, ISSER, Prof. Peter Quartey

Government projects a 42.1 per cent increase in domestic revenue

Fast-track fiscal consolidation measures-ISSER to govt

Stakeholders want the government to review e-levy

Government is projecting 99.5billion cedis as a domestic revenue target for 2022. This, according to the Director of the Institute of Social Statistical and Economic Research, Prof. Peter Quartey, is somewhat ambitious. He believes a 42.1 per cent increase in domestic revenue is not feasible and wants the government to revise it immediately.

According to him, “it is over-ambitious in my view; within one year, if you are going to increase revenue by 42 per cent, that is over-ambitious because certainly there is going to be an increase in revenue. If you look at the digitisation agenda and all the new things that have been introduced where you can pay your taxes online, it’s very good. However, I think the quantum jump [to] 42 per cent increase in revenue is not achievable. We ought to revise it.”

He cites the numerous concerns raised about the imposition of new taxes as an impediment to realising the country’s projected revenue.

“Even with the e-tax that was proposed, we have seen the agitations, and some revision might happen. Even in terms of expenditure, more requests for expenditure might come, so our budget deficit target might be threatened.”

ISSER, however, wants the government to revise the e-levy rate to 0.75 per cent. This, according to the institute, will allow for a gradual transitioning period for Ghanaians into the new tax collection system. Prof. Quartey believes the various reforms by the government will positively affect the country’s revenue mobilisation.

Professor Quartey also points out that the nation will miss out on its fiscal deficit target of 7.4 per cent in relation to the size of the economy.

According to him, Ghana may need to cut down on its expenditure to be able to meet its revenue target.

He wants the government to fast-track its fiscal consolidation but also make sure it does not lead to hardships and economic unrest in the country.

Ghana’s economy is expected to grow up to 5.8% in 2022, representing a near return to pre-pandemic performance after two difficult years.

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