Sunday, June 15, 2008

TAX INCENTIVE: WILL IT HAVE AN IMPACT? (MIRROR, PAGE 29)

Mrs Cynthia Osei, Lecturer, KUMASI Poly
Perhaps the directive by the government to waive taxes on some basic food items such as cereals, is in the right direction.
I am saying this because majority of Ghanaians depend on such food for survival.
With the reduction in taxes on some petroleum products, commercial drivers will also have a bit of relief, and I am certain they will also respond positively by reducing the fare in transporting some basic food items from the hinterlands to the urban centres.
The implication is that, the price of food items, such as plantain, yams, cocoyam and cassava among others, will also come down tremendously.
I am however disappointed that the government did not include petrol in the reduction of taxes on fuel generally.
I am saying this because other commercial vehicles also use petrol in their daily transactions. With the exclusion of petrol from the tax reduction, how does the government expect such drivers to reduce their fares as directed.
Normally, whenever there is an increase in the prices of petroleum products, service providers react very sharply, and increase their prices seconds after the announcements, but whenever there is price reduction, it takes days for them to react accordingly.
This shows that, some service providers are very greedy and take Ghanaians for granted. It also undermines governments policies and programmes of making life a bit comfortable for the ordinary Ghanaian, so this time, I expect service providers to become more responsible and patriotic and respond to the government’s directive. Importers should also reduce the prices of cereals to ensure that all Ghanaians benefit.
Organisations and Institutions that collaborate with service providers to increase or reduce prices should be at work immediately to ensure that nobody extorts money from Ghanaians for their selfish benefits and that of their immediate families.
As a worker, I was expecting the government to increase the basic salary of workers to cushion us a bit on the high cost of living, so I was disappointed that no such announcement came from the government.
However, I am still hoping that the government will take a second look at the increase of basic salaries for workers to make life a bit comfortable for us.


Kwabena Owusu Dwomo,
Soil Scientist

So far as I am concerned, the government has taken a bold decision which is of tremendous benefit to all Ghanaians.
However the onus rests on all to support the government to ensure that the benefits trickles down to every body.
I am saying this because Ghanaians are fond of seeking their own interest by maximising their profit margins at the least opportunity to the detriment of the larger society.
If there is no mechanism to check importers and service providers, there is no way that the government will be able to seek relief for Ghanaians through this initiative of waiving taxes on cereals and reducing taxes on fuel in the country.
If the government initiates a policy and Ghanaians do not help to implement it, there is no way that the policy can be of benefit to anyone, no matter how important the policy is. So with the support of every Ghanaian, prices of food items especially are likely to be reduced considerably.
When drivers supposed to transport food items from the rural areas to the urban centre reduce the cost of transportation, the farmer will also reduce the prices on food items and this will go a long way to cause prices at the markets to fall.
With the initiatives of reducing the cost of tractors and making fertilisers readily available to farmers at a reduced cost, the cost of production is likely to come down.
Under the circumstances farmers will take advantage of the situation to expand their farms to increase productivity and profit margins.
The future will be bright for Ghanaians because if the policy is strictly implemented and supported by all, there will be more to eat at a relatively cheaper cost to make life more meaningful.
There is the need to take partisan politics out of this initiative because immediately politics is introduced into this initiative, everything is likely to go wayward, so we should be more realistic and offer the requisite support to move the nation forward since this policy is likely to move the agriculture sector forward.


Evelyn Safoah
Ntiamoah,
Resident OF Kumasi

It was good for the government to waive taxes on the importation of cereals such as rice, and wheat .
This is because they are consumed by a large number of Ghanaians, more especially those in the low income group and the unemployed, so waiving the taxes on their importation will make their prices more affordable.
The escalating prices of these basic food items was becoming unbearable, and for the government to come out with this directive is a source of relief so the government should be commended for this.
However, I strongly disagree with the inclusion of yellow corn. This is because I don’t know the number of Ghanaians who consume that food. I think the government would have earned much commendation if it had added beans , oil and other food items which are largely consumed by majority of Ghanaians.
I also have strong reservation on the reduction of taxes on fuel. I am saying this because a large number of Ghanaians do not own vehicles and depend solely on public transport .
If this directive is strictly implemented, it is those who own vehicles , such as the politicians as well as the few well to do, who will benefit tremendously from this directive to the exclusion of the majority poor.
I think the best solution to the escalating crude oil prices is for the government to increase the number of Metro Mass Transit Bus Services and make them available to a larger group of Ghanaians. This will make travelling more affordable, enjoyable and comfortable.
With the improved services of the Metro Mass Transit Buses , where drivers and their assistants are well catered for, service delivery will also be more efficient and prompt.
With efficiency in the Metro Mass Transit services, congestion associated with our major roads would reduce dramatically, and this will also reduce the rate of road traffic injuries and death which are having a toll on Ghanaians, especially those in the productive sectors.
One thing is certain, and that is the fact that, the escalating crude oil prices is global, so there is the need for Ghanaians to support the government to initiate policies that would benefit all of us.


Charles Robert Amoako ,
Business Development Consultant

Government’s directive to waive taxes on cereals imported into the country is very good. The reduction of taxes on fuel as a policy is likely to move the economy forward, and this should be appreciated by every right minded Ghanaian.
With this reduction, the inflation that is now escalating will be minimal and the windfall will be of tremendous benefit to all Ghanaians.
It is the wish of every Ghanaian that the development initiative of the country will be sustained so the onus lies on everybody to support the initiative to enhance its success.
At the moment, importers are going to enjoy some tax exemptions from products imported into the country, and the benefits will be passed on to retailers, so the need for all of them to be transparent in their business transactions is very important.
This will go a long way to make consumers buy products at affordable prices. With the reduction of taxes on fuel it will trickle down to all sectors of the economy to to make it accelerate at a faster rate.
Market women would be able to buy some basic food items from the rural areas at cheap prices and bring them to the urban areas without much cost to consumers.
Looking at our economy and the level of transportation system, it is diesel cars that go to the rural areas frequently to convey food items to the urban centres, so it was good that government reduced prices of diesel. My expectation is that, prices of food items and other products will also be reduced considerably for all Ghanaians to appreciate the value of good governance.
My advise is that Ghanaians should embrace the government policy because it is in the right direction and also proves the sense of caring of the government for the plight of Ghanaians.


Agyenim Boateng, Businessman
The initiative by the government to reduce taxes on fuel and waving taxes on some food products imported into the country was good, but it came a bit too late.
This initiative will bring down the prices of food and other items to make life quite bearable. With this directive also, there is going to be competition among the business community, especially those who deal in rice.
While some of them will maintain their prices to keep their business afloat, those who will benefit from this exercise will reduce their prices in order to sell the products as quickly as possible, thereby enhancing quick turn over and maximisation of profit.
In the agriculture sector, I think the government ought to have re-introduce State farming, where the youth would be employed to work in the farms, thereby increasing yield for local consumption and export.
With the re-introduction of State Farms, those in the National Youth Employment could be deployed to work there and be paid for their services, and this would go a long way to maximise productivity and generate income for Ghana.
The waving of taxes on some food items and fuel
products to me, is a short term measure that the government has taken, and it would not help the nation much, because in the long run, it could lead to inflation and high prices of goods and services.
Taxes that are supposed to support sustainable national development are being waived for one reason or the other.
However, if the government becomes more focused on State farming where efficiency on food production is introduced, and supervision is strictly enforced, those who would be employed will work very hard to increase yield on basic food items, thereby making their prices more affordable to the ordinary Ghanaian.
This also means that government will generate adequate revenue from the production of these food items and use the profits to develop the nation.

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