Economics Lecturer at the University of Cape Coast (UCC), Professor John Gatsi, has expressed concerns about the issue of tax exemptions and the justification behind companies’ requests for them.
In an interview on the Citi Breakfast Show on Thursday, January 2, Prof. Gatsi stressed that tax exemptions should be approached with caution and seriousness.
The economist argued that not all companies applying for tax exemptions should automatically be granted them. He suggested that the government should be transparent about the criteria and modules used to determine which companies qualify for tax exemptions.
“We need to be clear of the mechanisms, the tools to put in place before tax exemptions are granted. For me, that is my position. I do not know other issues for which is compelling for tax exemptions to be granted to those companies amounting to over GHC 350 million”
“I have not heard any compelling reasons why those tax exemptions should be granted. What are they coming to do? Are they going to promote some kind of things basically for the country?
“If it is not strategic enough, I do not think tax exemptions are supposed to be given to any company that is applying. That is the baseline,” he stated.
The Speaker of Parliament, Alban Bagbin on Friday, December 20 adjourned proceedings to January 2, 2024, after Finance Minister Dr Mohammed Amin Adam failed to present the much-anticipated 2025 mini-budget.
The mini-budget, a constitutional requirement intended to provide a fiscal outlook for 2025, was expected to allocate funds for government expenditures in the first quarter of 2025 before the next administration assumes office.
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