How Ghana is dealing with taxation

As Ghana’s vp is busy explaining new tax venture-where they drop taxation on everything to spur growth by encouraging investors, Kenya on the other hand want to tax its self to growth. No country has done this to growth…Kenya will be the first.

Pay attention to what he is proposing and compare with what William Samoei Ruto does;

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That’s all nice and good but how many hotels has he built on behalf of his tribe ?

Now that’s how it’s done

Cutting taxes to spur economic growth has never been a way to spur economic growth. Especially for third world countries, demand side economics works better for countries with high purchasing power. But if they attempted to reduce taxes selectively they could achieve whatever they are trying to achieve like reducing taxes on basic consumer goods and increasing on the secondary/non-essential goods like on five-star hotel accomodation and such. In this way, they promote purchasing power, the demand grows as well as supply and they can distribute the wealth equitably. Unlike in Kenya where Wanjohi wa Kigogoini is paying for fuel at 130 bob and Safaricom CEO is paying the same.

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Winston Churchill ashaisema kitu inakaribianana hii…A country wanting to prosper through taxation is like a man stepping into a bucket and trying to lift himself using the handle

Kenya’s leadership (and most of us to be honest) do not like to think hard; why try develop and implement strategies that will pay off in 5-10years while you can simply go for the easy way? The treasury sees us as an endless supply of funds and will continue to squeeze us for whatever they think they want.

Do we have such leaders in Kenya?

For you to know shallow heads we have, instead of talking of such crucial matters, vp is talking of 2022. Middle class don’t question but sit at back of twitter to declare war

Kivutha kibwana na Ruto not forgetting minji minji

Doesn’t taxation influence purchasing power? Doesn’t lower taxes increase the purchasing power of the common man?

Investors will feel the pinch for high taxation for non-essential goods you propose. Some people suggest taxing the rich and giving relief to the poor. That doesn’t work well at all, because it’s the rich who have capital resources to invest in production, creating jobs and stimulating the service sector. The investor will do the math and calculate the risk, and if investing in country A is more expensive that in country B, they will go to country B.

Anyway, if Ghana follow through with their plan, we’ll see how it’ll all play out, and have a useful case study to discuss.

I like the part about establishing a flat rate of 3% tax on small businesses. This will encourage everyone to join the tax bracket instead of playing cat and mouse games with the taxman. In kenya only a few businesses pay their tax in full. Those who try to comply with the taxman discover very fast they cannot compete because the playing field is very uneven.