The Minority in Parliament has served notice that it will not support the government’s decision to increase Value Added Tax by 2.5 percent.
Leader of the side Haruna Iddrisu addressing a press conference on Monday, December 5, 2022, said it was punitive for the government to increase VAT by 2.5 percent.
“The most punitive amount is the addition of 2.5% VAT which may result in accumulated VAT for Ghana standing at 21.5%,” he said.
“Instead of cutting down on non-essential expenditure, we have rather seen an increase with additional spending of GHC82billion. Some of the envisaged expenditure items are entirely wasteful and needless and we demand a cut.”
“In 1995, when the NDC sought to introduce this tax, they [NPP] organised what was referred to as ‘Kume preko’ resulting in loss of lives of five persons. Where is principle in our body politic? And where do they stand when it comes to morality?” he quizzed.
On Thursday, November 24, 2022, the Finance Minister announced a 2.5 percent increase in VAT while presenting the country’s 2023 budget to Parliament.
Except for supplies made by a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%, the standard VAT rate is 12.5%.
By: Rainbowradioonline.com/Ghana
