Economist Professor Stephen Adei has called for Ghana’s 10% betting tax to be raised to 50%, arguing that betting is a “disastrous habit” that should be discouraged.
Speaking on TV3’s Hot Issues on December 22, 2024, Professor Adei, a former Rector of the Ghana Institute of Management and Public Administration (GIMPA), emphasized the importance of higher taxes on activities he views as harmful to society. “As a father, as a Christian leader, I call it a ‘sin tax,’ and sin taxes must be higher, not reduced,” he said. He pointed to taxes on cigarettes, alcohol, and betting in other countries, stating he would prefer a 50% tax on betting to discourage the practice.
This stance comes in contrast to a pledge by President-elect John Dramani Mahama, who promised during his campaign to remove several taxes within his first 100 days in office, including the 10% betting levy, the e-levy, and the COVID levy. Professor Adei, however, argued that taxes such as the e-levy should be maintained, as they are easier to collect.
“I would not have even promised to remove the e-levy,” he said, explaining that it is crucial to maintain taxes that are efficient to collect. “In tax administration, if it costs more to collect money than what you are going to get, you better forget it.”
The economist also highlighted the need for a broader review of Ghana’s tax system, citing the excessive number of taxes, particularly on imported goods. “I imported something and saw about 21 taxes on our car imports. That is ridiculous,” he remarked. He suggested focusing on taxes that are easier to collect, such as property taxes, and criticized the narrow tax base, with only one million income taxpayers out of a population of 33 million.
On the broader political landscape, Professor Adei also offered advice to the incoming Mahama administration, warning that managing public expectations would be crucial. He argued that one of President Akufo-Addo’s downfalls was his inability to manage expectations, pointing to the government’s shift from promises of self-sufficiency to seeking aid. He urged President-elect Mahama to learn from this and carefully manage expectations moving forward.
“Expectations management is very important in running your home, your organization, and a country,” Adei concluded.
Source:TheDotNews