Current tax regime overlooks gender-based inequalities  – NETRIGHT

By Christabel DANSO ABEAM

 Head of Secretariat – Network for Women’s Rights in Ghana (NETRIGHT), Patricia Blankson Akakpo, has indicated that Ghana tax systems are not designed to consider gender disparities, which often place disproportionate burdens on women, especially in the informal and lower-income sectors.

Speaking at the Policy Conference on Taxation, Gender Equality and Sustainable Development in Accra, she noted that there are situations where, across many fields, vulnerable groups are overburdened when it comes to taxation.

“We need to investigate how the e-levy affects men and women differently,” she said.

The two-day conference, themed ‘Taxation for equity: Exploring gendered perspectives in national and international tax policies’, aims to bring together over fifty key stakeholders made up of chief executive officers, trade unions, tax regulators, etc. to employ in-depth conversations, presentations and structured discussions to unravel key issues with respect to gender-sensitive policy making and effective implementation necessary for an equitable tax regime.

She stressed that women in Ghana are heavily represented in low-wage and informal employment sectors, where income is often irregular and not fully accounted for within formal tax structures. She added that indirect taxes like VAT contribute up to 30 percent of the total tax revenue in Ghana.

To address this concern, she suggested that these inequalities require intentionality in undertaking gender transformative tax policy reforms that prioritise fair and inclusive fiscal systems, and encouraged all stakeholders to engage in the Scaling Up Tax Justice (SCUT) project.

The SCUT project is a collaboration between NETRIGHT and Tax Justice Network Africa (TJNA), which seeks to advocate for gender equitable, fairer and progressive tax regimes embedded in human-centred, rights-based and pro-poor approaches. The project aims to champion the need for an equitable tax regime and improve Domestic Resource Mobilisation (DRM) in nine African countries, including Ghana.

Ms. Akakpo further proffered that pushing the tax justice agenda, working collaboratively to curb Illicit Financial Flows (IFFs) and strengthening social contracts are essential; therefore, the urgent need for legislature, civil society, labour, academia and other critical actors working together to push for a tax regime that is fair, equitable and not repressive.

George Winful, Director – Revenue Policy Division – Ministry of Finance, acknowledged the huge imbalance that goes against women and girls. “Data from the Global Gender Gap Index shows women’s progression in public office and other sectors; however, there is no denying the fact there still exists a huge imbalance that goes against women and girls.”

He further pledged that the government will work to accelerate the pace for equal rights, freedom and opportunities for women and girls to overcome the imbalance that they face every day.

Mr. Winful established that the COVID-19 pandemic has reinforced the urgent need for gender-sensitive fiscal policies since women were more disproportionately affected by job losses and increased care responsibilities during that period.

To address some of these disparities, he said that there is a need to be intentional in providing tax incentives for the vulnerable in society, especially women within the lower-income bracket.

Vera Kankan Bediako, Deputy Director – Ministry of Gender, Children and Social Protection, also added that for tax policies to be effective and equitable, they must address the specific economic realities of all groups within the society.

She further called on all stakeholders, development partners and civil society organisation to support the implementation of the Affirmative Action Gender Equity Act 2024.

“This Act will help to effectively and efficiently address gender imbalances in the political, social, economic, educational and cultural sectors of the Ghanaian economy.”

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