Business News of Wednesday, 21 June 2023

Source: starrfm.com.gh

70 pesewas out of every GH¢1 government raises from taxes wasted - ILAPI

Many in Ghana still question why they pay taxes without seeing its effect on development Many in Ghana still question why they pay taxes without seeing its effect on development

The Institute for Liberty and Policy Innovation (ILAPI), in its 2022 government waste report, says the government wastes on average 70 pesewas out of every GH¢1 it receives from taxes.

The government waste report, which measured citizens’ perceptions of tax usage on key government projects, also revealed that 92% of Ghanaians are of the view that their taxes are being wasted by the government, with 90.5% of Ghanaians saying they do not trust the government with their taxes.

On citizens’ perceptions of some key projects and policies by the government, 72.5% of Ghanaians are of the view that using taxes on Ex-gratia is a waste of revenue, with 74% holding the view that the government is wasting taxes on appointees.

Additionally, 77.5% of Ghanaians held the view that the government wasted taxes on the collapse of banks, with 83% describing the government’s use of taxes for the national cathedral as waste.

On the government's planting for food and jobs project, 57.5% of Ghanaians are of the view that the government wasted taxes on the programme, while 62% of Ghanaians hold the view that youth employment programmes by the government are a waste of taxes, and 80% of Ghanaians are of the view that the government is wasting taxes on fighting galamsey.

The report recommended a stoppage in the politicization of developmental projects and the application of stricter sanctions on corrupt acts, as 80% of Ghanaians held the view that prosecution of corrupt leaders would regain the citizen’s trust in government, with 79% of Ghanaians held the view that the completion of abandoned projects is how government can earn back trust from citizens.