GNCCI CEO Mark Badu-Aboagye Raises Concerns Over Tax Cuts Without Clear Revenue Strategy

As the debate around potential tax cuts continues to shape Ghana’s political landscape, Mark Badu-Aboagye, CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), has expressed concerns about the lack of a clear policy direction for generating revenue to compensate for the proposed reductions.

In a recent interview on Joy News’ PM Express, Business Edition, Badu-Aboagye cautioned that eliminating taxes without a robust strategy could lead to a significant revenue shortfall, ultimately forcing the government to rely on borrowing.

“In giving out all these promises of scrapping taxes, I haven’t heard a clear policy direction on how they are going to generate revenue,” he stated. “If taxes are removed without a strategy, we risk creating revenue holes that will push the government to resort to borrowing.”

Badu-Aboagye’s concerns come amid suggestions from various political parties that tax cuts could alleviate the financial strain on businesses and individuals. However, he emphasized that, without a coherent plan to generate alternative sources of revenue, these cuts could do more harm than good.

“For me, the taxes that are already there, if implemented well, and if businesses are supported to grow, compliance will increase, and we’ll generate a lot of revenue,” he explained.

One of Badu-Aboagye’s key concerns is the lack of adequate support for businesses that are integral to the nation’s revenue base. He cited a recent encounter between the Ghana Revenue Authority (GRA) and a company, highlighting the negative effects of poor policies on business operations.

“GRA went to this company and asked why their tax revenue had gone down. The company told them, ‘This is what you have done to us,’” he recounted. “Now, they’ve laid off workers, and the revenue that should have come from 27,000 tons of production is gone.”

Badu-Aboagye’s remarks serve as a timely reminder of the delicate balance between tax reductions and ensuring the long-term sustainability of Ghana’s revenue streams.