Accra, Ghana – In a heated parliamentary session on December 16, 2024, Majority Leader and Member of Parliament for Effutu, Alexander Afenyo-Markin, questioned the National Democratic Congress (NDC) on their ability to fund their policies after promising to remove several key taxes. This challenge comes in the wake of the NDC’s electoral victory, led by President-elect John Dramani Mahama, who has pledged to repeal the Electronic Transfer Tax (E-Levy), the 10% betting tax, and the emissions levy within his first 120 days in office.

A Call for Accountability

Afenyo-Markin expressed skepticism about the NDC’s financial strategy, particularly how they plan to implement social intervention programs without the revenue from these taxes. “We are aware that this incoming government is going to implement this Nkok) nkitinkiti policy. The Nkok) nkitinkiti is a social intervention programme. We are going to welcome it. But you say you are going to reduce taxes, repeal the betting tax, the E-Levy, and taxes at the port. We wonder where you will get the money to implement your policies. We are waiting,” he stated.

Reflecting on Past Mistakes

In his address, Afenyo-Markin also acknowledged the mistakes made by the outgoing New Patriotic Party (NPP) government and accepted the electoral verdict. “Mr Speaker, this is a time for reflection, particularly for those of us moving into opposition. No party can run a perfect government. We concede that mistakes were made, and the people have spoken. We’ve accepted it,” he admitted.

The NDC’s Promises

During his campaign, Mahama promised to alleviate the financial burden on Ghanaians by scrapping several taxes. These promises were a significant part of his platform and resonated with many voters. However, Afenyo-Markin’s challenge highlights the practical concerns of funding government programs without these revenue streams.

Economic Implications

The removal of the E-Levy, betting tax, and emissions levy could have significant economic implications. These taxes have been crucial sources of revenue for the government, funding various development projects and social programs. The NDC will need to find alternative revenue streams to avoid budget deficits and ensure the continuity of essential services. This challenge underscores the importance of a well-thought-out financial strategy to balance tax cuts with sustainable revenue generation.

Potential Solutions

To address these concerns, the NDC may need to explore innovative revenue generation methods. This could include enhancing tax compliance, broadening the tax base, and leveraging technology to improve tax collection efficiency. Additionally, the government could focus on stimulating economic growth through investments in key sectors such as agriculture, manufacturing, and technology. By creating a conducive environment for businesses to thrive, the NDC can potentially increase revenue through corporate taxes and job creation.

Public Reaction

The public’s reaction to the NDC’s tax cut promises has been mixed. While many Ghanaians welcome the relief from these taxes, there are concerns about the potential impact on government services and development projects. Some citizens fear that the removal of these taxes could lead to increased borrowing and higher national debt. The NDC will need to communicate their financial strategy clearly to reassure the public and gain their support.

Looking Ahead

As the NDC prepares to take office, the question of how they will balance their ambitious social programs with the need for revenue generation remains a critical issue. The incoming administration will need to present a clear and viable financial strategy to address these concerns and ensure the successful implementation of their policies. The ability to navigate these challenges will be crucial in determining the NDC’s effectiveness in delivering on their campaign promises

Afenyo-Markin’s remarks underscore the importance of fiscal responsibility and the challenges that come with significant tax cuts. As Ghana transitions to a new government, the debate over revenue generation and policy implementation will be crucial in shaping the country’s economic future. The NDC’s ability to find sustainable revenue sources while fulfilling their promises will be a key factor in their success and the nation’s progress.