Oppong Nkrumah warns government if it is just about cutting taxes then in 2017 Ken Ofori Atta cut many taxes
Kojo Oppong Nkrumah, a prominent government voice and Member of Parliament for Ofoase-Ayirebi, has issued a pointed warning regarding the current public debate on tax reduction, asserting that cutting taxes alone does not constitute a sustainable economic strategy. He argues this approach risks becoming a mere populist headline move rather than a platform for genuine national development.
The caution is rooted in recent history, specifically recalling the extensive tax slashes enacted by then-Finance Minister Ken Ofori-Atta in the 2017 budget. Numerous taxes were removed, including the Special Import Levy and the VAT on financial services and other items, intended to provide relief and improve the business environment. Nkrumah, however, argues that while those cuts provided initial relief, they ultimately failed to translate into the sustained long-term fiscal growth or the stability that struggling citizens required. This experience highlights a crucial distinction: tax cuts can focus too much on optics rather than the substance of a deep fiscal realignment. He stressed, “If our only measure of success is slashing taxes, we must remember that those same cuts were promised before.”
Nkrumah argues that tax cuts are not a panacea and reducing the percentage people pay does not amount to equity unless the underlying economy is stronger and revenue systems more effective. He advocates for a comprehensive realignment built on deeper reforms: supportive economic growth, strengthened public revenue infrastructure, and sustainable policies over short-term relief measures. Reforms should not only trim tax rates but also expand the tax base, bringing more individuals and businesses into the tax net, improving collection efficiency, and reducing revenue leakages. Furthermore, Nkrumah calls for balanced economic measures: fiscal reforms must be paired with strategic investment in critical national sectors such as education, public infrastructure, and social welfare, warning that inadequate revenue from unchecked cuts risks underfunding vital services.
Nkrumah’s warning resonates with tax policy experts, who caution against sacrificing fiscal discipline for populism. Analysts emphasize that aggressive tax reductions without simultaneous reforms in government spending, transparency, and effective revenue generation will ultimately undermine long-term economic stability. They point to international examples where unchecked tax cuts led to suffering public services or ballooning national debt. In response, government officials have acknowledged that tax policy must be more than a headline move, confirming that the Ministry of Finance is reviewing how to align tax relief with broader economic goals, including improving the business climate and boosting local production. Civil society groups are pressing for a transparent discussion with citizens, demanding clear policies that outline how any tax cuts will be financed and how social programs will be protected. Ghana is now facing a critical policy choice: to treat tax reduction as a populist tool or to integrate it into a comprehensive, responsible platform for sustainable, long-term national economic development.
