Ghana has recently elected a new president and government amidst a backdrop of significant public discontent with the country’s fiscal policies. Among the most contentious issues are the abolishment and proposed reinstatement of road tolls, the introduction and widespread criticism of the e-levy, and the controversial implementation of taxes such as the emission levy, COVID-19 levy, and betting tax.
This comprehensive analysis seeks to examine these pressing economic issues, compare international best practices, and propose alternative strategies to ensure sustainable revenue generation.
According to Mr. Forster Oteng Amoako, a tax consultant and financial expert, Ghana’s strategic geographical position makes its road infrastructure a vital artery for regional trade. Neighboring countries such as Burkina Faso, Mali, Togo, and Côte d’Ivoire utilize Ghanaian roads extensively, yet their lack of contribution to road maintenance through toll payments is perceived as inequitable by many Ghanaians.
This policy shift was seen as a misstep that not only reduced revenue streams but also failed to address the broader economic implications. Mr. Forster Oteng Amoako posited that the abolition adversely impacted small businesses, particularly roadside traders who relied on the economic activities generated around toll booths. These traders experienced a sharp decline in income, leading to the collapse of many businesses and compounding the economic hardships faced by local communities.
The new government proposal to reinstate road tolls signifies an acknowledgment of their economic and social importance. This policy reversal highlights the need for a balanced fiscal approach that prioritizes sustainable revenue generation.
Mr. Forster Oteng Amoako called on the new government to modernize toll collection to address inefficiencies associated with traditional toll collection methods. Ghana must embrace modern technologies. Internationally, countries such as Singapore, Norway, and the United States have implemented advanced electronic toll collection systems. For instance, Singapore’s Electronic Road Pricing (ERP) system uses a GPS-based mechanism to automatically deduct toll fees, reducing traffic congestion and improving fuel efficiency. Similarly, Norway employs RFID technology to enable seamless toll payments. “Adopting such systems in Ghana would not only enhance efficiency but also align with global best practices in infrastructure management.”
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Mr. Forster Oteng Amoako.
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