Akufo-Addo Bringing More Taxes In 2022 Budget To Escape Going To IMF …JM

Former President John Mahama has warned that the Akufo-Addo government is going to introduce new taxes on the already suffering Ghanaians in a bid to avoid running yo the International Monetary Fund (IMF) from its prevailing economic distress.

Ex-President Mahama’s warning is coming in the heels of speculations that the Akufo Addo administration may be lining up in the 2022 National Budget some fresh taxes for an overtaxed Ghanaian populace to bear.

“This is not the time for more taxes. The people are already suffering…This is the time for efficiency and modest use of the taxes that are collected from Ghanaians,” Mr. Mahama told his audience at a lecture to crown his nationwide ‘thank you tour.’

Already investors are demanding higher premiums for Ghana’s bonds because of the country’s huge debt which constitutes some 81% of its Gross Domestic Product (GDP).

What that debt conundrum means is that if all the things that Ghana produces are put together, the debt that it owes values up to 81 percent of it. And so if Ghana were to decide to pay all her debt, she would be left with only 19% of all that she produces to run the country.

The bad state of debt is due to the Akufo-Addo government’s penchant for borrowing, after it inherited a legacy debt of Ghc120billion in 2017, the government has increased it to almost Ghc350billion in less than five years.

Finance Minister, Ken Ofori-Minister, has basically become styled into what can be described as the borrowing Minister, floating all sorts of bonds for money and piling on the debt as a result.

Incidentally, Ofori-Atta is hooked on to borrowing because anytime he does, his private company, Databank Financial Services which has controversially been engaged by government as a so-called bond market expert and transaction advisor to these bonds.

Meanwhile, as the country’s debt piles up, the local currency, the cedi is depreciating against major trading currencies.

In respect of the 2022 budget, multiple sources have said the government is going to introduce another slew of taxes on already burdened Ghanaians.

Former President Mahama lamented that the government seems to only be interested in imposing hardship on Ghanaians by introducing painful fiscal measures in the 2022 budget statement to be presented on November 15, 2021, as a way of escaping going to the IMF.

He wondered where the NPP government’s promise to move from taxation to production, during election campaign, has gone to.