Ghanaians will face difficulties by 2020 – predicts Ato Forson

General News of Saturday, July 27, 2019

Source: www.ghanaweb.com

2019-07-27

Former Deputy Finance Minister Cbadiel Ato Forson said Ghanaians will face financial difficulties over the next year, as he predicts a tax hike in the mid-year budget review.

According to him, the administration headed by Akufo-Addo is currently struggling with issues of revenue mobilization and debt of the energy sector. It is not surprising that they raise taxes.

"In fact, I suspect they will increase the tax law in the energy sector. You see two options. let's change the percentage of the specific increase to the ad valorem or real increase of the specific rate. If this is done, it is clear that the price of gasoline will increase, that the driver on the street will have trouble and that if the price of gasoline increases, what is it? that you wait, it will affect everything we consume. So I'm waiting for some difficulties to manifest themselves by 2020, as the government says by introducing a tax measure during the mid-year review, "he said. declared.

The former deputy finance minister, speaking to GhanaWeb ahead of the budget review due to be presented to parliament on Monday, said the budget statement should review the ceilings for the SNIS, GETFUND and capital spending.

"We have raised very serious problems and we expect the Department of Finance to settle some of them. The problem is that the SNIS collapse because of the cap. We know that GETFUND is also collapsing because of caps, capital spending is actually going to a money amount going to the road fund is also struggling because of the cap. We therefore expect the Minister of Finance to review as a minimum the capping mechanism for SNIS, GETfund and National Road funds, as this will at least provide funding for these three statutory institutions to operate effectively. "

The finance minister is expected to present the biannual review of the budget statement and economic policy of the Government of Ghana for the 2019 fiscal year.

Deputy Finance Minister Abena Osei Asare suggested that most of the concerns of Ghanaians will be taken into account when the 2019 mid-year budget is revised on Monday, July 29, 2019.

Addressing GhanaWeb before reading the budget, she said the budget statement would address relevant issues and concerns of Ghanaians regarding the economy and spending.

She added that Ghanaians would be happy with the mid-year budget statement.