The government's proposed 2.5 percent increase in the Value Added Tax should be reconsidered, according to the parliamentary minority.
The Ranking Member of the Trade, Industry and Tourism Committee of Parliament, Emmanuel Armah Kofi Buah, lamented the effect of such a decision on customers in a statement to press.
He bemoaned the difficulties Ghanaians were already experiencing as a result of the cedi's subpar performance against the main foreign currencies.
The cost and payment of the tax will be passed on to customers, he claimed, increasing the cost of items on the Ghanaian market. He claimed that the hike in VAT will have a very negative impact on consumers.
"At the same time when the cedi has lost more than 50% of its value and is experiencing high interest rates, we are discussing raising the VAT. That actually means that this will ultimately be passed on to customers. It implies that consumers must be willing to pay far higher costs than what is now available.
He advised the government to take quick action as a result.
The short-term steps are crucial as we talk about the economy and how to recover because else, the problems will be severe.
On November 24, Ken Ofori-Atta, the finance minister, announced a rise in the value-added tax of 2.5 percent beginning in January 2023.
During his speech to Parliament regarding the 2023 budget, he made the announcement.
"Mr. Speaker, numerous communities around the nation are now calling for the construction of new highways. Sadly, it is challenging to meet these needs given the present economic challenges and the lack of a specific source of money for road building. We are recommending the adoption of fresh revenue measures in this regard. The most significant one is a 2.5 percentage point rise in VAT.