Tax law too complicated – expert advocates reforms

Tax law too complicated – expert advocates reforms

Abeiku Gyan-Quansah

A Partner at the PricewaterhouseCoopers (PwC) is blaming the complicated nature of Ghana’s tax system for noncompliance with the law in the informal sector.

Abeiku Gyan-Quansah said there are currently six tax bands which those in the informal sector have to comply with if they are to employ somebody.

“Why do you want to have a tax system that unduly complicates matters for you and then people use it as an excuse not to pay?” he quizzes.

Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra Wednesday, Mr Gyan-Quansah called for a reduction in the number of bands to three.

This, he said, will ensure an effective tax law compliance across the country.

“If we want people to comply and for us to raise the relevant taxes that we want in this country, we need to ensure the systems are adequately working. If I can actually get away with my wrongs, there is the motivation of getting away and doing the wrong thing, to what extent have we enforce our tax laws in the past,” he said. 

Commenting on the issue of tax raise, Mr Gyan-Quansah said there was nothing innovative about that if the needed policies and laws were not effectively implemented.

“There is nothing innovative about raising tax revenues if the policies that you have talked about, the laws that you have passed cannot and have not been implemented,” he said.

He added: “Before we share innovative ways of raising revenue, the very first point we want to say is that; until and unless the citizens are encouraged and motivated, and reassured that the purse is being protected well we still have challenges when it comes to revenue generation.”

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