Accra: Mr. Mohammed-Anwar Sadat Adam, the Country Director for Oxfam, an international charity, has raised concerns that Africa's tax systems are exacerbating inequality on the continent. He emphasized that these regressive tax systems are designed to maintain the status quo in favor of the wealthy, with low-income citizens bearing a disproportionately higher tax burden compared to the rich.
According to Ghana News Agency, Mr. Adam voiced these concerns 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 event, themed 'Bridging Inequalities in a Changing World: Advancing Inclusive Growth, Resilience, and Sustainable Natural Resource Management,' gathered research experts from the West African sub-region to discuss policy reforms aimed at reducing inequality. Academics also presented their research findings and papers during the conference.
The Country Director highlighted that Africa remains the only region where taxes on property and wealth fail to contribute to wealth redistribution from the rich to the poor. He pointed out that while the wealthy enjoy numerous tax incentives and exemptions on corporate income, labor continues to be 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 stated.
Mr. Adam shared compelling statistics, revealing that African governments collect less wealth tax than any other continent. He further noted a nearly 25 percent decline in wealth tax, while social security charges linked to salaries have risen by 20 percent, and income taxes have increased by 13 percent.
Dr. Anthony Yaw Baah, Chairperson of the Ghana Statistical Service Board, commented on the persistence of inequality in Ghana despite significant economic growth, with many young people remaining unemployed. He referenced a former Vice President of the country, stating that creating jobs is the most effective way to ensure inclusive growth. Dr. Baah stressed that economic growth without jobs for citizens and the youth cannot be truly inclusive.
Professor Nana Aba Appiah Amfo, Vice Chancellor of the University of Ghana, underscored the conference's importance, noting that it reflects the university's priorities, including providing a transformative student experience, fostering strategic partnerships, and promoting inclusivity. She added that while many challenges are global, the solutions must be locally grounded, and the findings from various researchers were both globally relevant and locally applicable.
