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Fiscal Policy Analyst calls for scrapping COVID-19 tax in mid-year budget review

Dr. Alex Ampaabeng, a Fiscal Policy Analyst, has urged the government to remove the COVID-19 Health Recovery Levy, commonly known as the COVID-19 tax, to alleviate the tax burden on citizens.

The levy was introduced in 2021 to raise revenue for COVID-19 expenditures.

With Ghana experiencing increased herd immunity due to vaccination efforts and adherence to COVID-19 protocols, Dr. Ampaabeng believes it is time to reconsider the need for the levy. He emphasized the importance of fairness in taxation and questioned the necessity of the levy at this stage.

As the government prepares for the Mid-Year Budget Review, other experts have also expressed their expectations. Professor Peter Quartey from the Institute of Statistical, Social and Economic Research (ISSER) called for transparency in revealing how the US$600 million from the International Monetary Fund (IMF) was disbursed.

He also hoped for measures to maintain exchange rate stability and control inflation without harming the manufacturing sector.

Dr. Charles Nyaaba, the Executive Director of the Peasant Farmers Association of Ghana (PFAG), called on the government to provide tax waivers and remove import duties on agricultural inputs and machinery.

He also emphasized the need for investment in irrigation infrastructure to reduce reliance on imports and lower the cost of agricultural products like tomatoes, garden eggs, and pepper.

Dr. Nyaaba further urged the government to support value addition, food processing, and packaging by implementing a credit guarantee system to encourage private sector investment in these areas.

Additionally, he suggested promoting fertilizer manufacturing within the country and increasing funding for research and development in the agricultural sector.



This post first appeared on The Ghanaian Standard, please read the originial post: here

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Fiscal Policy Analyst calls for scrapping COVID-19 tax in mid-year budget review

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