By Edward Dankwah, GNA
Accra, Nov. 20, GNA – Dr Ebenezer Ashley, Executive Head of Ghana Association of Banks has said the government needs to aggressively mobilise domestic revenue to reset the economy.
He said this could be done by frequently and adequately equipping the Ghana Revenue Authority (GRA) and the various Districts and Municipal Assemblies to collect taxes on economic activities and properties, especially using e-Value Added Tax (VAT)
Speaking to the Ghana News Agency in an interview, Dr Ashley said, “GRA managed to increase revenue mobilisation across the country, however, the target for 2023 remained unmet, owing partly to the inability of the District and Municipal Assemblies to collect property tax, sizable informal sector and GRA operating below its full capacity.”
He said the government should streamline and rationalise expenditure such that it would be strategically tilted towards Small and Medium Enterprises, private sector and manufacturing industry to create jobs.
“Investment in tourism, commitment to climate change and energy transition and expanding LEAP, school feeding, NHlS and ensuring the removal of taxes on sanitary pads produced will also contribute to the restoration of macroeconomic stability,” he added.
Dr Ashley said Banks exhibited resilient performance despite the elevated macroeconomic risks and the huge losses experienced at the end of 2022 financial year due to the Domestic Debt Exchange Programme (DDEP).
He added that the growth in the industry was mainly driven by increase in deposits, which remained 38.9 per cent as at September 2023 compared to 22.5 per cent in 2022 indicating customers’ confidence in the industry, despite the DDEP.
The Executive Head said the industry experienced 19.6 per cent year-over-year growth in total assets to GH¢249.86 billion as at end of September 2023, compared with 22.9 per cent growth in September 2022.
Dr Ashley said the Bank of Ghana would use the Monetary Policy Rate to signal monetary policy stance and contain inflationary pressures to address the exchange rate depreciation.
“The expansion of the gold purchase programme to support Foreign exchange reserve accumulation and ensuring commitment to the International Monetary Fund programme would also address the exchange rate depreciation,” he added
GNA