Ghana risks stagnation without tax culture, resource management reforms – Economist
By Solomon Nartey Tetteh
A Development Economist at the University of Ghana, Dr George Domfe, has raised concerns about Ghana’s weak tax culture and poor resource management, warning that the country risks economic stagnation if urgent reforms are not undertaken.
Speaking on Business Breakfast on Zed 101.9 FM, Dr Domfe identified two major problems confronting the nation’s development: low tax revenue generation and the misuse of public resources.
According to him, a significant number of Ghanaians in the workforce do not pay taxes, yet successive governments and opposition parties have failed to tackle the issue head-on. Instead, he said, opposition parties often exploit the public’s natural aversion to taxation by campaigning against tax policies, only to reverse their positions once in power.
“People don’t like paying taxes, and that’s not unique to Ghana, it’s human nature,” Dr Domfe explained.
He recalled historical examples, including the 1995 ‘Kume Preko’ demonstrations against the introduction of Value Added Tax (VAT) under the Rawlings administration, which led to violent clashes.
Dr Domfe also accused politicians of double standards, citing recent instances where political parties that once denounced tax measures have gone ahead to introduce or raise levies after assuming power.
“When this government was in opposition, they argued Ghana could create resources without taxes. But when they came to power, eight new taxes were either introduced or increased, with only two scrapped,” he said.
The economist lamented Ghana’s inability to prudently manage the resources it does generate, pointing to widespread corruption and leakages within the public sector.
“Kickbacks have almost become normalised in public service delivery. Negotiations are ongoing between service providers and government officials over bribes, and this has been accepted as standard practice,” he stressed.
Dr Domfe contrasted the financial struggles of retired academics and professionals with the wealth amassed by former politicians.
“You see retired lecturers, some of whom taught me, struggling in their seventies. Yet you hardly find a former politician poor, most leave office extremely wealthy within a short period,” he said.
Dr Domfe described this situation as a reflection of Ghana’s political culture, where citizens remain overly partisan and fail to hold leaders accountable.
“We are not serious as a people. Our masses are too political and often ignorant. We support our parties blindly, even when they are wrong,” he remarked.
He called for a national reset that focuses on broadening the tax base, enforcing accountability, and plugging resource leakages to ensure sustainable development.
