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The former Minister for Finance in the erstwhile Mahama administration, Mr. Seth Terkper, has expressed hard feelings about the tax situation in Ghana describing it as severe and punitive in the history of Ghana.

According to the main opposition party, the National Democratic Congress, has alleged that the governing New Patriotic Party (NPP) has introduced over 50 taxes since resuming office in 2017.

The continuous foisting of taxes on Ghanaians have erupted massive conversation amongst the public.

Speaking in an interview on Citi News, he insisted that Ghana’s current rates are extremely high. 

He further revealed that such high rates could eventually lead individuals to seek ways to evade these taxes.

Seth Terkper said, “I think we are seeing the worst of the tax system… It is the most punitive and worst tax structure that we have had. And as with every tax that is punitive, you will end up not collecting, or generating as much revenue as possible.”

He further pointed out that “But more importantly, when you begin to introduce punitive taxes, taxpayers find ways and means of evading and avoiding the tax. So if you have a simplified tax regime it is better and compliance increases. And the evidence is that if you look at our tax-to-GDP ratio well until recently as GRA is claiming, the highest point at which revenue was collected was 2015 per the percentage of GDP, not nominal terms.”