The Network for Women’s Rights in Ghana (NETRIGHT) has called for urgent tax reforms to address the disproportionate burden indirect taxes, such as VAT, place on women, particularly those in low-income groups.
Speaking at a two-day policy conference themed “Taxation for Equity: Exploring Gendered Perspectives in National and International Tax Policies,” Executive Director for NETRIGHT, Patricia Blankson Akakpo emphasized the need for tax policies informed by gendered perspectives to promote equity.
She highlighted how existing structures exacerbate economic inequalities, with low-income earners often paying more in taxes due to their inability to buy goods in bulk.
“If I have to buy something and I am a low income earner, I will not be able to buy it in bulk. We have carried out a research which shows that depending on your status and income levels, you will end up paying more in taxes than others. So it is important that we look at that. We organized this two day policy conference to see how best our tax regime can be gendered to benefit both men and women in the country,” she said.
Meanwhile, the Tax Justice Network Africa has urged the government to formalize Ghana’s informal economy, which constitutes a large portion of economic activity.
Policy and Research Manager, Isaac Danso Agyiri stressed that transitioning informal workers to formal operations would provide a more sustainable tax base – reducing over-reliance on indirect taxes.
“I think for the time being, government needs to run. Public goods need to be provided. We need to provide security for the people. We need to provide school and hospitals and so for the time being we are collecting some indirect tax. But going forward the long term view, we should be looking to formalize our economies. We should look at providing opportunities for people working in the informal sector to formalize their businesses. So we can have a very good account of their income and start taxing them on their income and not rely on indirect tax like we do now,” Isaac Danso Agyiri suggested.
