Ken Ofori-Atta – Finance Minister
Finance Minister Ken Ofori-Atta is expected to present the Mid-year Budget Review to Parliament today.
Some bodies have expressed misgivings about the possibility of tax increases, but Cabinet debunked the reports at a meeting on Tuesday.
Five political parties, namely the National Democratic Party (NDP), Ghana Freedom Party (GFP), Progressive People’s Party (PPP) and All People’s Congress (APC), have all kicked against increases in taxes or introduction of new ones.
President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has debunked reports about the tax increment, saying the union was waiting to officially hear from the Minister of Finance today.
It has been rumoured that government could increase Value Added Tax (VAT) from 17.5 percent to 21 percent.
The Minority in Parliament has cautioned government against increasing taxes in the mid-year budget.
Minority spokesperson on Finance Cassiel Ato Forson said government’s decision to increase taxes would worsen the plight of the poor, adding that inflation increased to double digits after the brief decline over the past two months.
Mr Forson said the increment of taxes would place a huge burden on the citizens who are already saddled with high taxes.
He further cautioned government to desist from reckless borrowing to keep the economy stable.
Professor Peter Quartey, an economist with the University of Ghana, has said that government must enhance accountability.
In an interview with Citi Fm, he said such marginal increase must come with strategies to plug revenue leaks and also improve tax collection.
A Deputy Minister of Information, Kojo Oppong Nkrumah, also indicated he was also hopeful that Ghanaians would rally behind any plans to raise more revenue to fund its projects.
“Moving forward, if it becomes necessary that we raise more revenue to ensure that we complete what remains of the agenda, I think it’s an argument that the people of Ghana, as adduced from evidence, will rally behind when it is eventually rolled out.”
Meanwhile, Member of Parliament (MP) for Ledzokuku, Dr Bernard Okoe Boye, has denied assertions about tax increment by the government.
He said the government was only putting in place measures to boost revenue in a manner that would not negatively affect businesses and individuals.
“There will not be any VAT increase. What is happening is that government is contemplating very innovative ways of raising revenue in a manner that will be least destructive to business and bring as minimal discomfort to citizens.”
By Ebenezer Gyamerah