Tax analyst, Ali Nakyea Abdallah has described as unlawful government’s tax exemption directive decision for importers.
[contextly_sidebar id=”IVOaMnbwoqNSwOUgMhV8wOBlf9oEsysT”]Mr. Nakyea believes the decision is unfair on importers who are entitled to tax exemption and must be rectified.
The GRA earlier released a statement which demanded all applicants who qualify for exemptions from import duties and taxes to make prior payments and after, make a claim for refund of the amounts paid.
Importers and exporters were unhappy about the decision and called on government to review the directive.
But in an interview with Citi Business News, Mr. Ali Nakyea said government will among others lock up capital of businesses should the system be continue.
“…Which contracts have been approved by parliament and under article 174, of the constitution it is only parliament that can grant exemptions. So if Parliament grants the exemption and today you by a publication in the papers indicate that any person who has an exemption or not, has to pay duty and apply for a refund the question is under what law are you operating?” he queried.
He further added that government must restructure the imperative to allow tax exemptions enjoy their privileges.
“If you need to abolish the system that exists, you need to pass a law. You don’t do that by decree or publication in a newspaper because of the abuse of the exemptions system. Is it that there are no systems and structures to trace who is abusing the system and dealing with those rather than generalizing it because otherwise confidence in the systems wanes and the budget says it is intending to make it a business friendly environment will that not be contradictory? So my issue is can we search for those abusing the system and deal with them? That will be way better than this approach.”
Mr. Nakyea spoke to Citi Business News at the sidelines of a seminar organized by the Pentecost University College.
It was on the theme “The 2017 budget statement in perspective:Does it answer the economic development goals of Ghana?”
–
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana