Member of Parliament for Nhyiaeso, Dr. Stephen Amoah, has criticised the current Mahama administration’s new tax reforms, arguing that they risk reversing the economic gains made in previous years.
His comments follow the presentation of the 2026 Budget Statement and Economic Policy by Finance Minister Dr. Cassiel Ato Forson, which introduced major VAT reforms, including the scrapping of the COVID-19 levy, the removal of the decoupled GETFund and NHIS levy from the VAT base, and the elimination of VAT on reconnaissance and mineral prospecting.
Speaking on Channel One Newsroom, Dr. Stephen Amoah cautioned that the government’s approach to taxation could seriously undermine economic stability.
According to him, Ghana is already operating what he describes as a “negative effective tax rate economy.” He argued that cutting taxes for what he describes as political applause, without considering long-term fiscal sustainability, is dangerous.
“We are running what I describe as negative effective tax rate economy. What it means is that monies generated every year in our country, if you divide it among the households, the amount that each house will get is far less than the amount that each household will get if you divide the expenditure. So, we are always running a deficit economy.
“So, if because of political capital, you start withdrawing and reducing taxes for people to say ‘hey,’ not thinking about the stability and resilience of our economy, is that how you manage an economy? Ghanaians do not know what they are doing. They are simply taking us back,” he stressed.
Source:Lovinghananews.com
