Deputy Finance Minister, Dr. John A. Kumah has revealed government's readiness to increase tax capacity to ensure development in the country.

Speaking at the inauguration of the Ashanti Regional Youth Parliament on the theme: The Ghanaian Taxation Systems and Sustainability of Her Development – The Politics and Realities, Mr. Kumah indicated the country can only develop through taxation.

According to the Ejisu MP, the planned widening of the tax capacity is by making the tax administration work more efficiently and also by broadening the tax base taking into consideration the political economy to ensure development.

His comment comes on the back of the proposed E-levy which has generated controversies in the country.

He said increasing tax revenues has become even more important in the context of the impact of the COVID-19 pandemic, with the fiscal deficit forecast at 9.4% of GDP in 2021, and public debt at the end of September estimated at 78% of GDP (or 72% excluding financial sector bailouts and energy sector IPP payments).

He affirmed no country has ever attained sustainable development by depending on aid and not putting in efforts to improve domestic tax revenue mobilization.

Dr. John Kumah added taxation in smart economics, has had a wider effect on economic development than any other revenue generation means, however, it is no doubt that optimal taxes and judicious spending of taxes have long-term positive effects on economic development.

“I dare say that the outcome of the current debate will help to define what kind of country we want; a country where we all share the burden of nation-building or a country of free-riders who pay lip service to development. Let us think on this as we conclude our discourse,” he said.

He, therefore, called on Ghanaians to contribute the little they could as according to him, taxes play a critical role in the development of a country.