- 5 Marks
Question
In order to generate more revenue for national development in Ghana, tax experts often suggest the need to “deepen as well as widen” the tax system of Ghana.
Required:
Explain the difference between “Deepening the Tax System” and “Widening the Tax System” and suggest how the Ghana Revenue Authority can deepen and widen the tax system of Ghana. (5 marks)
Answer
Deepening the Tax System refers to imposing additional taxes on the same set of people or economic activities, such as increasing tax rates or disallowing deductions. Widening the Tax System involves expanding the tax base by including new taxpayers or introducing new types of taxes. The Ghana Revenue Authority can deepen the tax system by eliminating certain exemptions or increasing tax rates, and widen it by incorporating informal sector businesses and introducing new taxes like e-levy.
- Tags: Fiscal Policy, Ghana Revenue Authority, Revenue, Tax Deepening, Tax System, Tax Widening
- Level: Level 2
- Topic: Overview of the Ghanaian Tax System and Fiscal Policy
- Series: DEC 2023
- Uploader: Joseph