The feasibility of President Mahama’s ambitious economic promises.
In a recent interview, former Finance Minister Seth Terkper provided insights into the feasibility of former President John Mahama’s ambitious economic promises, including the elimination of various taxes, and the free university education for first-year students. Ghana faces economic challenges, Terkper’s analysis presents a nuanced understanding of the relationship between policy ambitions and fiscal realities.
Complexity in Ghana’s Tax Regime
Terkper highlighted that Ghana’s tax system has faced significant challenges in administration and compliance due to the reintroduction of multiple levies that were once streamlined under the Value Added Tax (VAT) system. He explained that under previous reforms, taxes such as the GETFund and National Health Insurance levies were incorporated into VAT for ease of administration. According to him, the reversal of this approach has complicated the tax structure, making it less efficient and reducing its buoyancy.
READ ALSO; We Will Scrap The E-Levy and Betting Tax Without Doubt
He further emphasized the importance of focusing on the four foundational pillars of Ghana’s tax system—Income Tax, VAT, Customs Duty, and Excise Duty. Rationalizing these pillars, he argued, would simplify compliance and ensure higher revenue generation.
WATCH FULL INTERVIEW
On Scrapping Taxes and Free Education
Responding to Mahama’s promise to scrap certain taxes, Terkper acknowledged that it is possible without a phased and strategic approach. “There are two groups of taxes—some can be removed immediately, while others require a gradual timetable,” he explained. He also pointed out that Ghana’s current IMF program demands careful fiscal planning to avoid abrupt policy changes that could destabilize the economy.
EXPLORE; Maastricht University Holland Scholarships 2025 in the Netherlands (Fully Funded)
On Mahama’s pledge for free education for first-year university students, Terkper noted that expanding infrastructure, as seen in past administrations, is key to making such policies sustainable. He referenced Ghana’s history of progressively free education and how savings from infrastructure optimization could help fund ambitious social interventions.
MUST READ; Breaking the Cycle of Limitation: The Future First Lady
Lessons from Ghana’s Past
Terkper underscored that Ghana has previously achieved notable economic stability with lower deficits, manageable debt levels, and controlled inflation under Mahama’s tenure. While the ideal economic targets were not always met, he expressed confidence that a return to such fiscal discipline is achievable with careful planning and rationalization.
Watch the Full Interview
For an in-depth understanding of Seth Terkper’s perspective on Ghana’s economic future and the practicality of John Mahama’s promises, watch the full interview on YouTube. Gain unique insights from the former Finance Minister who offers critical reflections on tax reforms, education policies, and how Ghana can navigate its current economic challenges.
Stay tuned for more expert analyses of Ghana’s economic policies and how they shape our nation’s future!
LATEST VIDEO
