The Chief Executive Officer (CEO) of Petrosol Ghana, Michael Bozumbil is making a strong case for private sector involvement in the management of tax revenues targeted at economic stabilization.
Bozumbil argues that private sector businesses always bear the brunt of economic mismanagement and must therefore have a seat at the table in the utilization of the taxes they pay.
The private sector player who was speaking at the Deloitte Economic Dialogue on the 2025 Budget Statement and Economic Policy expressed frustration on the recurring situation where governments from time to time lead the economy into a downturn. However, it is the private sector that’s always “forced” to pay hefty taxes aimed at correcting the “mess” of the government.
The Petrosol boss is convinced that given the situation that the private sector always pays for the “mess” of the government, the sector must have a say in the utilization of these tax funds imposed for the purposes of stabilizing the economy.
“The issue of the sunset clauses to taxes that we introduced with the main objective being to stabilize the economy. As private sector players, we are always willing to support the government, even though it is the government that messes the economy up. But may I suggest that going forward, whenever we introduce such tax measures, we create a fund for that money and make the private sector get involved,” he suggested at the budget forum.
He further justified that even the International Monetary Fund (IMF), which only provides loans that the country will pay, always has a say in the utilization of the loans.
“Even the IMF that gives the loan; it’s not that they are contributing to solving the problem. They give you a loan that you pay back. But they come to dictate every time. Indeed, they will come to see how you spend the money,” he recounted.
He therefore continued, “my suggestion is that anytime we introduce these, you know, tax handles targeted at stabilizing the economy, it should go into a fund that the private sector will be involved in the disbursement of that fund in stabilizing the economy.”
In his view, this approach would not only enhance transparency but also ensure effective use of funds targeted at addressing the country’s economic challenges. Many businesses have in the past decried excessive taxation as a disincentive to growth, arguing that funds meant for economic recovery often end up mismanaged.
The CEO of Petrosol’s call aligns with broader private sector concerns that taxes meant for economic stabilization should be utilized judiciously, with input from those who contribute significantly to government revenues.
Will the government heed to this call? Only time can tell.
