Minority Against VAT Increment, E-Levy Revision And Other Revenue Allocations In 2023 Budget

The Minority has raised objections to some of the government’s projects and revenue measures in the 2023 Budget Statement and Economic Policy.

At a presser on Monday, the Minority leader and Member of Parliament for Tamale South, Haruna Iddrisu pin pointed to the 2.5% proposed increase in Value Added Tax (VAT), the 1% E-levy without a threshold and allocations to some projects including the National cathedral.

According to the Minority, the government should rather cut expenditure to attain fiscal consolidation.

“It is the position of the Minority that we are demanding major expenditure cuts from this government to achieve fiscal consolidation. The size of government must necessarily be reduced and would demand that the size of government be reduced.”

The Minority registered its displeasure at the government’s allocation to Contingency Vote.

“How can we accept an outrageous 1.4 billion allocation for the Contingency Vote to the 2023 budget. We know this is an additional $400 million compared to last year’s allocation of ¢993 million.”

Haruna Iddrisu also said his outfit is “opposed to allocation ¢10 million for what has been strangely described as Defence Advisory Services in the budget.

“We also strongly denounced plans to increase the staff strength of the Government Machinery by a staggering 1570 at page 230 of the 2023 budget.”

He added, “The most punitive among these is the 2.5% VAT which may result in accumulated VAT for Ghana standing at 21.5%…What moral right has Nana Addo Dankwa and the NPP to increase VAT? In 1995 when the BDC sought to introduce tax, they organised what was referred to as “Ku me Preko”, resulting in the lives of 5 persons.”

He held, “particularly that we are facing the worst economic crisis and the worst hardships in the lifetime of our country, we do not think that Ghanaians deserve increased taxation.”

The minority is also against the ¢80 million allocation toward the halted National Cathedral construction.

“If this 80 million is approved, we would have spent ¢420 million on the National cathedral . Is that our national priority today?Ladies and gentlemen get the Minority right. This is a project that will cause the state and the taxpayer USD 400 million. Are we not right to ask, ‘How was procurement done? How is value for money ensured? What is best practice in determining it?”

He added that the minority is not against the construction of a church, however, its opposition is meant to demand accountability.

On E-levy, Mr Iddrisu proposed a 1% rate with a threshold of ¢500 to protect.

Source: opemsuo.com/Hajara Fuseini