Impose more taxes on companies making huge profits – Dr. John Kwakye

Dr. John Kwakye, Director of Research, Institute of Economic Affairs (IEA), has advised the government to impose more taxes on companies that are making huge profits in the country.

According to him, other countries are implementing similar policies to rebuild their economies after the impact of the COVID-19 pandemic.

Speaking on Accra-based TV3, Dr. Kwakye stated that there are some companies in the oil and gas, telecommunication and banking sectors of the economy that are making huge profits.

He said these companies are also repatriating profits despite the difficulties in the economy, therefore they need to pay more taxes to the government.

“Some of us have proposed that this is the time that those sectors that are making windfall profits in the context of Covid, this is the time that the government should impose some kinds of extra tax on them, other countries have done it.

“The oil companies, gas companies, the telcos, even banks because we all hear the amount of profit that they are making,” Dr John Kwakye stated.

He continued: “On the fiscal side, I will even expect that the government will ask them to pay some more taxes. The Bank of Ghana also on its part, if it is reaching out to them so that they purchase foreign exchange proceeds, that is fine.

“I have also suggested that maybe, this is the time that the Bank of Ghana should also reach out to all these companies that are making huge profits and repatriating them.

“The BoG should arrange with them so that they stagger the repatriation, they can deposit their excess money with you, you then pay interest on it and then you stagger the repatriation so that it doesn’t put so much pressure on the Cedi,” Dr John Kwakye stressed.