Delete "deadly" taxes – Demands from minorities

General News of Tuesday, July 30, 2019

Source: Myjoyonline.com

2019-07-30

The parliamentary minority demands an immediate reversal of new taxes announced Monday by the Minister of Finance.

Ken Ofori-Atta, in his review of the mid-year budget of 2019, proposed an increase in levies in the energy sector and the tax on communication services.

Mr Ofori-Atta asked Parliament to approve an increase of 20 GHp per liter for gasoline and diesel and 8 GHp per kg for LPG.

This pushes prices for gasoline and diesel upwards to 90 GHp per gallon.

He also proposed a 3% to 9% increase in the tax on communication services.

The minority, which before the budget had warned of such increases, criticized the government for not taking into account its cautiousness.

"If these increases (gasoline, diesel and LPG) create frustration and Ghanaians want to unload by phone calls or social media, the mid-year budget has made it so expensive, as a result imposition of a 50% increase in communication service. Tax of 6% to 9%.

"These measures will send shock waves into many households and businesses, as this will only exacerbate the unsustainable hardship that Ghanaians are already living," Ministry spokesman Ato Forson told AFP on Tuesday. Finance Officer, Mr. Ato Forson.

In his opinion, these increases will add to a series of taxes imposed by President Akufo-Addo, despite his promise not to do so to the opposition. In particular, he claimed to include a 5% increase in the disguised value tax of NHIL and GETFund Levies. .

borrowing

NDC deputies accused the government of having "cosmetically" posted a positive primary balance for two consecutive years, while public debt had exploded.

Mr Ato Forson estimates that on the basis of what he calls the government's appetite for borrowing, the public debt could reach some 220 billion ¢ before the end of the year, which represents 65% of GDP.

"It would mean that in three years, President Akufo-Addo would have added 100 billion GHS to the public debt. We would like to emphasize that this is only what has been added since 2017. In total, President Akufo-Addo has borrowed approximately 160 billion ¢ (which is not added to the public debt) since 2017, a part being used for the readjustment of the debt.

"The public debt would exceed $ 220 billion, once the levy has begun for a number of loans approved by Parliament. This rapid increase in the level of public debt means that we have reached a point of debt unsustainability, a fact confirmed by the World Bank director for countries, "he added.

This development, said MP Ajumako-Enyan-Esiam, contradicts what the president and his party have said to the people of Ghana.

They created the impression that they could govern the country without borrowing and that even if they borrowed, the funds would be used only for capital investment, he said.

"After adding $ 84 billion to the public debt, President Akufo-Addo can not indicate any significant capital investment made in the past three years. Almost all the funds borrowed were used for consumption-related expenses. "

For the minority, the mid-year budget clearly shows that public finances are in critical condition and the use of additional fiscal measures is an indication of what they think is a troubled period.

The populist policies adopted by President Akufo-Addo, in their view, have gone through a complete cycle and wipe out all the gains of fiscal consolidation before the NPP government takes office.

"It has become clear that the NPP does not intend to keep its promises to Ghanaians in terms of borrowing and public debt, imposition of taxes, and even more. adjustments in the price of the essence and resolution of the general difficulties that the people are facing.

"The mid-year budget presented by the Minister of Finance is dark and presage of very difficult times for all Ghanaians. It is therefore necessary for the Akufo-Addo government to change course, otherwise it will plunge the economy into much bigger challenges, "said Forson.