Capping taxation not feasible – Ayine

A former Attorney General, Dominic Ayine, has described as unfeasible calls for a limit to be placed on the government’s power to tax citizens.

The call was made by private legal practitioner David Ofosu-Dorte during a lecture on the Constitution at the University of Professional Studies in Accra.

Mr Ofosu-Dorte explained that the move will prevent citizens from excess taxation and force the government to cut down on expenditure.

“There must be an upper limit where the government cannot tax more…otherwise they will continue to increase their expenditure, and they will pass on the expenditure. Also, we must limit the government’s ability to borrow,” Mr Ofosu-Dorte who is also the Executive Chairman at AB & David Law said.

But Speaking to Citi News, the Bolgatanga East MP said placing a cap on taxes might affect development in the country.

“I think that a limit on how to tax is not feasible in the sense that we have to gauge how much we need for development in the country before you can say that there has to be a limit to taxation.

“So we need to gauge the inflows and know how much is required for purposes of driving the economic development of the country. So it is very important to look at the evidence before a decision is taken on whether or not a limit must be placed on taxation.”