“A change in the tax rate affects the individual bound” – Isaac Kojo Yalley
Tax and Fiscal Policy expert, Mr. Isaac Kojo Yalley has outlined that the individual bound is always affected by a change in tax rate.
Speaking on Business, Taxation and Fiscal Policies on the African Journalists for Economic Opportunity Training (AJEOT-2020) at Koforidua, Economist Yalley said if the government continues to change the tax rate, it goes a long way to affect the individual bound.
“Government can propose to increase or decrease the tax of goods and services to any percentage and the individual bound becomes affected. ” However, it’s very paramount to know that, nobody can ask you to pay a tax without knowing the rate”, he said.
He indicated that it’s enshrined in the construction. “Understanding why there’s tax rate and the implications of the tax rate should be sought for”, he added.
In a related development, he explained that for one to understand tax policy;
1. One must know the law and legislations
2. Know the Tax Rate
3. Know the Relevant Tax Holders etc.
He believes that having these knowledge on tax policy is key to citizens and businesses. “Governments impose charges on their citizens and businesses as a means of raising revenue, which is then used to meet their budgetary demands. “This includes financing government and public projects as well as making the business environment in the country conducive for economic growth”, he added.
In his final submission, he threw more light on taxation being the key to promoting sustainable growth and poverty reduction and encouraged everyone to become abreast of the tax rate and implications. “It provides Ghana with a stable and predictable fiscal environment to promote growth and to finance her social and physical infrastructural needs”, he added.“The cost of doing business is high” – Franklin Cudjoe