The reintroduction of the road toll system has been recommended by the administration to provide money for rapid growth.
Professor Peter Quartey, Director of the Institute for Statistical, Social and Economic Research (ISSER) at the University of Ghana, claims that a public-private partnership might enable the Ministry of Roads and Highways to implement an electronic pass (E-pass) system (PPP).
In order to fill revenue deficits in the economy, he stated, "it is about time the government examined this problem of the road tax system."
At "The Cedi Summit" in Accra yesterday[June 27, 2022], Prof. Quartey gave a speech on "The world economic crisis – Impact on sub-Saharan African (SSA) countries."
It was put on by Citi TV in conjunction with ISSER and ABSA Bank Ghana as part of the 2022 Citi Business Festival.
The topic of discussion for the day was the health of the world economy and how it affected countries in sub-Saharan Africa.
Participants studied the viability and consequences of potential remedies for SSA economies generally and the Ghanaian economy in particular. They also analysed the different policy response choices available to governments.
False signal
According to Prof. Quartey, "the government is not interested in the total abolition of road tolls since it sends the incorrect signals to private investors who seek to exhibit interest in a PPP arrangement.
He said that an effective E-pass system may alleviate the typical congestion at toll gates. "How can you get a private businessperson to come in if you make highways free? The director said, "I think we need to examine this issue and implement the recommended remedial steps and evaluate them. Similar E-pass systems are being used in several areas of the subregion.
Financial stabilisation
Prof. Quartey urged vigorous domestic revenue mobilisation through effective tax and non-tax income-generating strategies in relation to fiscal consolidation.
He identified property rates as one of the potential sources of revenue, noting that just GH468 million had been set aside for that industry in 2022.
He proposed that additional money may be generated from the value of the properties offered as security to the various banks.
Additionally, he urged the use of "strong and creative revenue mobilisation methods including digitalization at revenue collection stations and the implementation of amended Tax Exemption Bill."
In his estimation, excluding additional domestic tax exemptions, import exemptions totaled GH4.011 billion in 2021 and GH2.388 billion in 2022.
Other solutions, such routine audits of government organisations, surcharges or legal action against violators, and the encouragement of automation at locations where money is collected through fees were also recommended.
Additionally, he noted, state-owned firms should be managed like businesses, with qualified individuals chosen to lead such institutions and defined performance objectives.
Options for policy
Policy alternatives The execution of a labour market survey and a reassessment of the pay scale for public sector employees were suggested by Prof. Quartey.