The Daily Statesman newspaper last Friday, carried a story on its front page captioned “VAT May Go Up From 17.5% to 21.5%”.
According to the newspaper, information available to it suggests that, the Value Added Tax (VAT) may go up to 21.5 percent from the current 17.5percent.
The New Patriotic Party (NPP), whiles in opposition opposed every attempt by the previous government to increase or introduce new taxes, some of these taxes were christened ‘nuisance taxes’.
Since the birth of this administration in 2017, we have been told of reforms introduced to block revenue leakages.
About a month or two ago, government told us that, with the introduction of paperless system at the ports, revenue has gone up. They never spare a moment to tell us about the policies they have introduced which are yielding results.
In fulfillment of its promises that were thought to be overly ambitious, the government decided to restore teacher trainee and nurses trainee allowances. T
The previous administration cancelled the allowances which have over-lived its usefulness and purpose, because the reason for maintaining it was no longer tenable.
Again the government introduced free Senior High School (SHS) education; already the education sector, consumes over a quarter of our budgets. It is common sense that, you cannot give what you don’t have.
Several appeals were made to the president to reduce the number of his ministers. For the first time in the history of this country, we have 110 ministers.
Importers and exporters are up in arms about how much they are to pay to export or import. The resultant effect is them passing whatever cost they incur onto the final consumer.
The government should rather increase the nation’s general tax awareness and compliance, we always go for the low hanging fruits, that is to always increase.
We all hailed the government, when it decided to abolish certain taxes last year, this latest attempt to increase VAT, means we were misled into believing they cared.
The government has a moral duty to first seek efficiency in the current use of our scarce resources before burdening the already weary tax payer with the price tag of the bloated government.
All factors considered, we are of the opinion that any hike in taxes, must be recanted as Ghanaians are already suffocating.