It is significant for the government to recognize that it is in a tax and debt trap which cannot be relied on to eradicate poverty. Taxation that leads to the increase of prices of commodities does not recognize the rich or poor person. It goes across the board. Hence essential commodities such as rice, oil, sugar and other consumables become unaffordable to the ordinary person.
It is obvious that the government is still incurring debts to cushion the revenue of the country despite the high level of taxation. It is also relying on debt to meet development expenditure. This is why the debt burden has mounted to 110.6 billion dalasi and is increasing.
There is need to take major policy decisions to move away from the tax and debt trap that the economy is plunged into. Foroyaa will continue to monitor the implications of the tax and debt trap to investors, businesses of the country and consumers.
