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The Tax Justice Network Africa (TJNA) is reporting that Ghana losses about USD 1.4 billion each year due to illicit financial flows. The group argues that the country is amongst a list of top countries losing significant revenue through tax evasion, tax exemptions, and inefficiencies in the country’s tax system.
Joseph Osei-Owusu, Ghana’s Deputy Speaker while addressing the official launch of the African Parliamentary Network on Illicit Financial Flows and Taxation (APNIFFT) stated that Ghana allows so much illicit outflow when the country’s public needs, need to invest in public infrastructure, unfortunately, it will borrow and not provide services. Osei-Owusu, also criticised the lack of political will to implement laws that protect against illegal financial outflows. House Majority Leader Alexander Afenyo-Markin also urged executives and members of the caucus to prioritise Ghana’s interests and work towards implementing policies that would reduce illicit financial flows and improve taxation practices.
During the media interaction at the Illicit Financial Flows and Taxation Summit in Accra, TJNA’s Strategic Programmes Director, Francis Kairu, called for swift action to combat illicit financial flows and taxation issues. The biggest challenge of the current generation is the issue of illicit financial flow. Ghana is one of the countries that loses the most because it has natural resources, and a huge population that is being taxed.
Kairu went on to detail the consequences of the activities of multinational corporations in Ghana. Ghana also has multinational companies in this country and you are losing over USD 1.4 billion every year to the activities of these multinationals and illicit financial flows. Ghana is one of the countries that grant tax exemptions and tax holidays every other day,he said.
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The United Nations reports that corruption and illicit financial flows cost the global economy USD 3.5 trillion every year. According to UNCTAD’s Economic Development in Africa Report, it is estimated that Africa loses more than USD 50 billion a year to illicit flows. In the last 50 years, Africa lost over USD 1 trillion, which is the equivalent of all the official development assistance received during the same period.
