Africa-Press – Ghana. Mr. Mohammed-Anwar Sadat Adam, the Country Director for Oxfam, an international charity, says Africa’s tax systems are exacerbating the continent’s growing inequality.
He stated that the regressive tax systems were designed to maintain the status quo in favour of the wealthy, with low-income citizens paying a higher proportion of their earnings as tax than the rich.
Mr. Adam raised this concern at the 7th College of Humanities International Research Conference and the 4th Staff Awards Ceremony, held at the University of Ghana’s Cedi Conference Centre.
The two-day conference is on the theme: “Bridging Inequalities in a Changing World: Advancing Inclusive Growth, Resilience, and Sustainable Natural Resource Management.”
The conference brought together research experts from the West African sub-region to deliberate on policy reforms aimed at closing the inequality gap. Academics also presented their research findings and papers.
The Country Director asserted that Africa was the only region where taxes on property and wealth did not contribute to redistribution from the rich to the poor.
He explained that while the wealthy benefit from numerous tax incentives and exemptions on corporate income, labour is heavily taxed.
“For every dollar African countries raise through taxes on income and profit, they collect more than two dollars through regressive indirect taxes such as Value Added Tax (VAT), which often disproportionately affects the poor,” he said.
Mr. Adam shared compelling statistics, highlighting that African governments collectes less wealth tax than any other continent.
He further noted that despite a nearly 25 per cent decline in wealth tax, social security charges linked to salaries have risen by 20 per cent, and income taxes, increased by 13 per cent.
Dr. Anthony Yaw Baah, Chairperson of the Ghana Statistical Service Board, commented that although Ghana had achieved significant economic growth, inequality persists, with many young people remaining unemployed.
Referencing a former Vice President of the country, he said that the most effective way to ensure inclusive growth is to create jobs.
Dr. Baah stressed that economic growth without jobs for citizens and the youth could not be truly inclusive.
Professor Nana Aba Appiah Amfo, Vice Chancellor of the University of Ghana, highlighted the conference’s significance, noting that it reflected the university’s priorities, including a transformative student experience, strategic partnerships, and the promotion of inclusivity.
She added that while many challenges were global, the solutions must be locally grounded, and the findings from the various researchers were both globally relevant and locally applicable.
Edited by Samuel Osei-Frempong
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