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NO VAT INCREMENT AS PRESUMED -OFORI ATTAH

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The Finance Minister, Mr. Ken Ofori-Attah ensured Ghanaians that there was not going to be an increase in the Value Added Tax (VAT) yesterday during his presentation of the mid-year budget review.

The theme for this year’s mid-year budget review was; from Stabilization to Growth, Putting Ghana Back to Work Again.

When parliament sat, Finance Minister, Ken Ofori- Attah presented the mid-year budget review. Before the event, strong and several reactions were predicted especially in the area of taxation.

Many other speculations had it that, the government was going to increase the VAT from 17.5percent to 21 percent, but the finance Minister Ken Ofori-Attah remained tight-lipped on whether or not that was true. He only responded that, Ghanaians will know when he goes to parliament.

Minority in parliament earlier this week send a strong warning to government not to increase tax. According to them, “increase in tax will bring huge burden on Ghanaians who are already struggling”.

However, Ken Ofori- Attah yesterday during his delivering of the mid-year budget made it known to Ghanaians that, “there will be no increase in VAT”.

He added that the New Patriotic Party (NPP) government has not stumbled in its promise made to Ghanaians in their campaign messages in 2016 election.

Minority in Parliament again are saying that, “Ken Ofori-Attah is to change the 2.5 percent Health Insurance Fund Levy (HIFL) and the 2.5percent Ghana Education Trust Fund (GETFUND) levy on VAT into flat levy and this will increase liabilities of manufacturers, wholesalers and retailers, and the prices of goods will definitely shoot up with the new implementation of the new VAT policy”. And to them it is a ‘back door’ increment.

Minister of Finance Ken Ofori-Attah further stated that, the revenue has amount to 7.2percent of the Gross Domestic Product (GDP) and it is their goal to grow the productive sector of the economy.

He emphasized that; tax evasion offenders will be prosecuted.

He concluded by saying that, every single cedi will be spent with the development of Ghana in mind. And that the NPP government has confidence and a well establishment on growth plan, and has sought for a social partnership to establish a wiser society which is underway.

 

By: Rita Gyenkel/pinkfmonlinegh.com

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