The Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana has urged the government to consider streamlining taxes and improving the enabling environment for the private sector.
According to the Institute, this will aid “the private sector to flourish and create the needed jobs to reduce youth unemployment.”
This forms part of ISSER’s recommendation following the recently presented Mid-Year Budget Review by the Minister of Finance, Dr. Mohammed Amin Adam.
The report stated that Ghana’s economy has been resilient and projected to grow at a moderate rate of 3.1% based on the Post-Crisis Programme for Economic Growth (PC-PEG) initiatives of the government.
It added: “While unemployment, especially youth unemployment, remains a major concern, the various taxes and levies affecting businesses were expected to be consolidated in the mid-year review. A 15% VAT coupled with other levies makes the country an unattractive destination for business. ”
The report also added that while per capita income has increased from US$1,979 in 2016 to US$2,365 in 2023, widespread inequality remains.
“Rising food prices and cost of living have affected the working class with its inherent livelihood challenges. We recommend accelerating economic growth while implementing better policies to redistribute income,” it explained.
The report urged the need for efficient tax collection measures to deepen to minimise the introduction of new or higher taxes.
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