By: Franklin ASARE-DONKOH
The Minority Caucus in Parliament has vowed to reject a proposed 2.5% increase in Value Added Tax (VAT) by the government.
The Minority led by Mr. Haruna Iddrisu at a Press Conference held on 5th December, 2022 at the Speaker’s Block -Committee Room 1&2 near Parliament House reiterated it resolve to kick against the 2.5% increase in VAT.
“Ladies and gentlemen of the media, Whilst whittling away the little we have as a country in this intransigent manner, the Akufo-Addo/Bawumia government has decided to pile more hardships on the people of Ghana through the introduction of more taxes in the 2023 Budget presented to Parliament.
The most punitive among these taxes is the addition of 2.5% to the VAT rate bringing it to a cumulative 21.5% (made up of 2.5% GETFund, 2.5% National Health Insurance, 1% Covid Levy and 15% VAT all levied under the terms of Value Added Act, Act 870) the highest in Africa.” The Minority Leader and Member of Parliament for Tamale South alluded.
Mr Iddrisu explained further by saying “As sure as night follows day, the 2 5% increase will worsen the hardship faced by Ghanaians, as the prices of almost all items will increase instantaneously once this tax comes into effect”.
According to him, in addition to the increase in VAT, the Minority have detected twenty-two additional tax and revenue measures that will make life even more difficult and unbearable for every Ghanaian.
“As Social Democrats, we of the NDC stock have never been against taxation per se, but we are simply unable to agree with the steep increase and timing of the introduction of these tax measures.
At a time when people are facing the worst economic crisis and hardships in their lifetime, the last thing that is desired is further taxation.
The high rate of inflation has already eroded the disposable incomes of Ghanaians and we can no longer bear to give more to a government that is determined to waste our resources on extravagant living.” The Minority Leader added.