VAT Increment: We’ll allow Events of 1995 to guide our Debate on the Floor – Haruna Iddrisu

“That the VAT, a tax instrument, which rakes in GH¢15 billion annually was the thinking and thought of the party you so-thought could not make any meaningful contribution to our national development effort.”

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Minority leader Haruna Iddrisu has served notice to the Finance Minister Ken Ofori-Atta that the events of 1995 will guide his sides’ during the debate on the 2.5% increment in the Value Added Tax (VAT).

According to him, for an administration that bastardized the National Democratic Congress (NDC) government while in opposition some 23 years ago for implementing a VAT scheme, it is surprising that it did not hesitate to increase the tax even in the middle of an economic crisis.

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He argued morally the contradiction of the ruling New Patriotic Party (NPP) on the VAT during its implementation and where it stands on it now should be questioned.

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Speaking at the post-budget workshop on the 2023 Budget Statement and Economic Policy of the government, Haruna Iddrisu said VAT as a tax instrument remains the best for Ghana.

“How I wish we live the 1995 years again when, then opposition, you saw no good in the NDC, at least today there is some good in the NDC.”

“That the VAT, a tax instrument, which rakes in GH¢15 billion annually was the thinking and thought of the party you so-thought could not make any meaningful contribution to our national development effort.”

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The Minority leader, however, expressed concerns about the impact of the 2.5% on businesses and the private sector and questioned whether it will not be a disincentive to growth and to an already struggling and ailing private sector that is struggling to cope with the cost of doing business.

Speaking on e-levy, Haruna Iddrisu emphasized that the Minority will subject it to a critical thorough discussion and further consultation, emphasizing further that removing the threshold and reducing it to 1% is not enough.

He urged the Minister of Finance to consider other scenarios of perhaps 0.5% at a threshold of GH¢300 compared to the 1% at a threshold of 0%.

He insisted the e-levy should certainly not be on every amount and citing an example said, “Assume a poor son abroad send the mother US$50 dollars and that is to be changed and remitted to support the medical care of the mother, what will be the rate of e-levy?”

He urged the Minister to consult further and assured the Minority is amenable to consultation on the matter and ready to help resuscitate the economy in a matter that respects all views.

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