The Institute of Statistical Social and Economic Research (ISSER) of the University of Ghana has urged the government to evaluate its tax reforms and scrap or restructure those that are non-performing.
For instance , it said, the Electronic Transaction Levy (E-Levy) which grew by 386.1 per cent year-on-year fell short of the programme target by 53.6 per cent , and should thus be reduced to 0.5 per cent from 0.75 per to rake in more revenue.
Additionally, the institute said the "Cash out" feature of mobile money transfers was a revenue leakage which should be blocked to encourage more people to use electronic payments.
At the institute's review of the mid-year 2023 budget in Accra Tuesday, the Director of ISSER , Professor Peter Quartey, said although revenue handles had improved in the half year, a good number had missed their targets.
"The new taxes introduced in the 2023 budget statement has to be critically monitored and evaluated.The improvement in some of the tax handles and by extension revenue mobilisation should be sustained but with strict expenditure controls, value for money expenditures and a review of the size of government," he said.
Highlighting those that had improved, Prof. Quartey said Personal Income Tax increased by 73.5 per cent year on year and above the set target by 15.5 per cent; Value Added Tax Receipts increased by 96.3 per cent year on year and exceeded the target by 5.3 per cent.
However, he said, the National Fiscal Stabilisation Levy grew by 40.2 per cent but fell short of the target by 56.7 per cent and while questioning why there was no revenue figures in the budget review, advocated the scrapping of the COVID-19 levy because it had outlived its intended purpose.
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Touching on the general performance of the economy, he said, some of the economic indicators had shown that the country had made some progress in recovery.
He said the decline in inflation, some stability on exchange rate and budget deficit were encouraging, but it should not call for jubilation because more needed to be done to achieve significant results.
"We have turned the first corner but a few more to turn," he said, and described the review of the Mid-year 2023 Budget and economic statement as mixed outcomes.
Prof. Quartey expressed concern about the Bank of Ghana's financing of the government spending and advocated the setting of clear limit because that practice had implications on money supply, inflation and the exchange rate.
He also called for increased support for agriculture to ensure among other things value addition and improve the entire value chain since it was a critical industry to the country's social economic development.
