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Star Ghana Initiative Promotes 'Progressive Tax' Regime

Star Ghana Initiative Promotes 'Progressive Tax' Regime

Star Ghana, a good governance advocacy organization has partnered civil society organisations (CSOs) to improve Ghana’s tax regime for development.

In a statement released in Accra, it says the project, dubbed ‘Promoting Progressive Tax for Inclusive Development (PPTID)' seeks an improved tax system that supports the socially excluded and micro-enterprises.

"We are of the view that a progressive tax policy implementation has implication for reducing inequality. This is because a progressive tax regime is a proven tool for redistributing income from the upper class and large businesses to lower income earners and microbusinesses," Star Ghana said in a statement.

The CSO said its technical approach for achieving this objective is consistent with SEND Ghana's tried and tested Participatory Monitoring and Evaluation (PM&E) framework and other technological approaches to increase implementation of progressive tax policies and initiatives to have the socially excluded groups advocating tax reforms from regressive to progressive regime and to increase civil society's influence in progressive tax reforms.

"SEND Ghana will directly partner the socially excluded, mobilise, sensitise and gather their perspectives on how existing tax policies disfavour their social and economic progress; and undertaking national campaign on the benefits of a progressive tax regime the project will contribute to reducing opposition to the introduction of tax policies that increase rates for people, companies and entities that earn more and on the other hand reduce rates for lower income earners as well as microbusinesses," Star Ghana explains further.

Through collaboration and partnerships with CSOs in Star Ghana's economic cluster group, the Tax Justice Network, the media and the CSOs platform on SDGs, the good governance advocacy group says it will contribute to preventing the gap between high incomes earners, large businesses and the poor, vulnerable and socially excluded on the other hand, for growing wider by influencing a more progressive tax reforms and actual implementation.

Chiefly, the objectives of the project are as follows:

a. To facilitate the involvement of socially excluded groups in tax advocacy;

b. To increase civil society's responsiveness to regressive tax regime through media engagement;

c. To influence the replacement of regressive tax system with a progressive tax regime.

The focus of the project is national tax policy influencing, and hence it will have an effect on all Ghanaians who fall into the general description of socially excluded such as the poor, vulnerable and marginalised citizens.

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