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Economist Professor Patrick Asuming has urged President-elect John Dramani Mahama to exercise caution in removing taxes as part of his first 100 days in office.
Speaking on ABC’s Morning Show, Asuming acknowledged Mahama’s plan to abolish some taxes but cautioned that such actions could have unintended consequences for the country’s economy.
Asuming highlighted the need for careful consideration of tax removals, emphasizing that the e-levy should be scrapped immediately, as promised by Mahama.
However, he urged the new president to be more cautious with other tax cuts, particularly until alternative revenue generation strategies are in place.
“But the other ones he should be more cautious. And not remove them until he has found different ways of improving the revenue collection,” Asuming said.
He further stressed that reducing inefficiencies in public spending could save Ghana more money than eliminating certain taxes.
Regarding Mahama’s pledge to renegotiate the IMF deal, Asuming expressed support for the initiative but warned that any renegotiation should avoid increasing Ghana’s debt burden.
“The IMF wouldn’t want to change the program in such a way that it will increase the debt position. That’s not something we would agree to,” he noted.
Asuming’s comments come amid Mahama’s promise during his campaign to remove taxes such as the e-levy, COVID levy, and other levies he considered burdensome to Ghanaians.
