The Majority Leader, Alexander Afenyo-Markin, has raised concerns over how the incoming Mahama administration plans to generate revenue for its projects if it proceeds with its promise to abolish several taxes.
Ahead of the 2024 general elections, the National Democratic Congress (NDC) presidential candidate, John Dramani Mahama, pledged to scrap a number of taxes within his first 100 days in office.
These taxes include the electronic levy (e-levy), COVID-19 levy, the 10% levy on betting, emissions levy, and import duties on vehicles and equipment for industrial and agricultural purposes. According to Mahama, these taxes have placed an undue burden on Ghanaians.
Speaking on the floor of Parliament on Monday, December 16, Afenyo-Markin, who also serves as the Member of Parliament for Effutu, expressed skepticism about the NDC’s ability to meet its financial obligations while removing significant revenue streams.
“We are going to see how you [NDC MPs] will protect the public purse,” Afenyo-Markin remarked. “We have heard from Terkper that you can’t finance the free SHS [policy]. We will see where you will raise revenue to fund the Nkokor Nkitinkitin [projects].”
Afenyo-Markin’s remarks echo concerns raised by economic analysts about the feasibility of Mahama’s tax removal plans. Joe Jackson, Chief Executive Officer of Dalex Finance, also questioned the practicality of the NDC’s manifesto commitments.
Appearing on TV3 on Friday, December 13, Jackson highlighted the significant economic challenges awaiting the next administration, particularly in light of the proposed tax cuts. “Let us not be mistaken. In 2025, we have to look at how we are performing in terms of revenue because some of the items are going to go out.
There has been a manifesto commitment to take out the e-levy, betting tax, and the COVID levy. So, a lot of issues are going to come out, and I have no doubt in my mind that the challenge is going to be huge,” he stated.
Jackson further posed a critical question: “You say you are going to remove tax A, B, C, D. But where is the money going to come from?”
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When asked why anyone would still aspire to lead the country given the impending economic hurdles, Jackson responded: “Because somebody has to step up and rule, somebody has to step up and fix the country, somebody has to step up.”
With the 2024 elections on the horizon, the debate surrounding Mahama’s tax policies is likely to intensify, as Ghanaians weigh the economic implications of the NDC’s ambitious promises.
