We’ll reject 2.5% VAT increment — Minority

According to the Minority Leader, Haruna Iddrisu, President Nana Addo Dankwa Akufo-Addo, and Finance Minister Ken Ofori-Atta have no moral right to increase VAT after he led the demo in 1995 for the same tax increment that claimed five lives.

Speaking at a press conference, he said, “Whilst whittling away the little we have as a country in this intransigent manner, the Akufo-Addo/Bawumia government has decided to pile more hardships on the people of Ghana through the introduction of more taxes in the 2023 budget presented to Parliament.”

The proposal to increase VAT forms part of the government’s seven-point agenda to revitalize the economy, Ofori-Atta said when he presented the 2023 budget in Parliament on Thursday, November 24, 2022.

The standard VAT rate is 12.5%, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%.

Meanwhile, the Executive Director of Revenue Mobilisation Africa, Geoffrey Ocansey has said the increase in the country’s VAT by 2.5% announced by Ofori-Atta is “regressive”.

He said the increment in VAT will widen the poverty gap and heap more pressure on Ghanaians who are already overburdened with taxes.