Reduce Excessive Tax Incentives To Multinational Coys—NGO

A woman holds 03 July 2007 in Accra a waGhana can reduce its excessive borrowing if it stops offering too much tax incentives to multi-national companies, Christopher Dapaa, Coordinating Director of Resource Link, an NGO has said.

He said the granting of too much tax incentives to multinational companies was impacting negatively on government’s revenue collection.

Mr. Dapaa was speaking at a forum organised by Resource Link in collaboration with Action Aid Ghana at Wenchi in the Brong-Ahafo Region.

The forum was among other things to promote transparency, accountability and equity in the tax system as well as to facilitate changes in the tax structures towards the avoidance of all forms of capital flight.

Mr. Dapaa said research conducted by the NGO in 2013 had revealed that Ghana loses $1.2 billion every year through tax incentives to multi-national companies.

He added that from 2011-2013 alone Ghana lost $70 million in the oil and gas sector due to imbalances in the tax policies.

The situation, he noted had worsened by what he termed as the absence of a well defined policy framework and strategies leading to consequent revenue generation problems such as the inability to expand the revenue collection base and ineffective administration of collection system.

Another biggest challenge Mr. Dapaa identified on revenue lost was illicit financial outflows.

He said it was important that the practice was halted to stop the continued loss of valuable resources needed for developmental projects.

Participants at the forum included representatives of selected municipal and district assemblies, tax collection agencies and a section of the general public.

From: Daniel Dzirasah,Wenchi

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