Audio Attachment:Listen to Ken Ofori-Atta |
Finance Minister, Ken Ofori-Atta says there will be no increase in Value Added Tax (VAT) as widely speculated.
He made this known while presenting the mid-year budget review in Parliament, Thursday.
There were earlier reports that government intended to increase VAT from 17.5% to 21.5%.
The minority after hearing this, vowed to resist any VAT increment since Ghanaians are already facing hardship.
However, Mr Ofori-Atta swerved the minority saying "I’ll like to inform the house Mr Speaker that there will be no increase in VAT".
According to him, "last year we abolished numerous taxes. The scale of tax reductions had never been implemented in the 60 years of Ghana’s economic history since independence. The evidence shows that the economy has responded positively to these tax cuts. What is also clear to us Mr Speaker is that we are not collecting as much as we should".
To solve this problem, government instead of resorting to the imposition of many taxes, has brought out four measures:
- ensure compliance with existing tax laws,
- plug the leakages in the existing system,
- ensure value-for-money for the expenditures that government undertakes and
- ensure that the wealthy also pay their fair share.
Apart from this, to meet fiscal deficit target and to ensure that Ghana exits from the IMF programe: "we are converting the NHIS 2.5% to a straight levy of 2.5%; Converting GETFUND of 2.5% to the straight levy of 2.5%. VAT will thus be maintained at 12.5%. We are imposing a luxury vehicle tax. We are reviewing personal income tax of 10,000 cedis, intensifying compliance measures".
Source: Peacefmonline.com
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Smart people now they have segregated the VAT into 12.5% 2.5% and 2.5% by NOV they will increase the 2.5%'s to any amount and argue that they have not increase VAT lets wait and see.
Life hard! Ebi words we go chop?
lier
These are a group of confused guys calling themselves ministers , and even minister of finance. Are we so dumb to make these guys get away with their continuous lying and deception. You have increased taxes and you are lying through your teeth with terminologies. Mr Minister, some of us think you are just taking big money and imposing harshness on our pockets.
At least I can believe the Finance Minister, he is not in the pocket of Nyantakyi
Good government (NPP) in Ghana NOW!
10000GH salary now attract a 35% PAYE, Jesus Christ.
Are you saying , highlander is luxury, land cruiser is luxury... i think then all the government workers who uses these cars must be tax as well. i dont see these cars as luxury . luxury cars we are talking of Lamborghini, etc
i have always said ndc is the most us3l3ss party on earth. not only bcos they make false allegations but bcos they end up helping their opponents. believe me they just messed up another opportunity. this is why they will continue to stay in opposition forever. i am very sure that this govt may have considered increasing VAT and decided to leak the information to the public to see the reaction. they would have been very ***barred word*** if they had gone ahead to increase it. ndc is so desperate to make this govt unpopular and that is what will keep them in opposition till thy kingdom come.
Please, Peace fm. can you publicy this for me is the government saying private vehicles with engine capacity of 3.0 are luxury cars? what is the description of a luxury car? is luxury not subjective?