The business of running any economy is dependent on several stakeholders, as well as factors. In most parts of the world the major stakeholders are always the government, captains of business and industry and workers.
Leadership and administration are provided by the government through its ministries, while captains of industry and the leadership of workers offer suggestions and partner government agencies as they seek to find answers to the myriad of issues that confront the state.
Governments worldwide, we also know, depend a lot on taxes to develop and run their economies, because receipts from the various productive sectors are not enough.
They are not enough to ensure good health for the citizenry, education for the youth, the necessary infrastructure to enhance productivity and generally the provision of social amenities for the growing population.
That is why the Daily Graphic believes taxes are of great importance if we, as a country, are to develop.
We are, however, of the view that the introduction or increase in any existing tax must only be done after extensive discussions with all major stakeholders, to engender understanding; bring on board the most effective way of implementation and find the best ways to ameliorate any hardships that the execution may bring on the people of Ghana.
The new Value Added Tax (VAT) rate of 2.5 per cent that brings the total to 17.5 per cent and its start of implementation on January 2, this year, has already been received with mixed feelings, although no one has disputed the need for taxes.
After stiff opposition against its introduction in December 1998 at 10 per cent to replace the 15 per cent sales and service taxes when it was passed by Parliament in February under Act 546, VAT has been increased steadily to include the Ghana Education Trust Fund (GETFund) and the National Health Insurance (NHI) levies.
While we believe the VAT and especially the GETFund and the NHI levies have contributed tremendously to development and access to education and health care since their introduction, we urge the government that, like many other taxes and funds, it should always subject the taxes to national debate and acceptance before implementation.
The Daily Graphic is of the view that when that is done, it would curb the ritualistic cycle of increases in taxes always resulting in the clamour for higher wages and salaries because people cannot make ends meet.
It would also curtail the incessant labour agitations which put the economy out of gear because of high prices of goods and lowered purchasing power of workers. Taxes are important but the frequent resort to them without the necessary safety nets will end up in the vicious cycle of more taxes and agitation for increased salaries to cushion workers against the hardships.
