North Tongu Member of Parliament Samuel Okudzeto Ablakwa has expressed shock at the decision by the Akufo-Addo administration to increase the Value Added Tax (VAT) by 2.5 per cent.
The Finance Minister has proposed in the 2023 budget presentation an increment in the VAT by 2.5 per cent.
The standard VAT rate is 12.5%, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%.
The proposal to increase the rate forms part of the seven point agenda to revitalize the economy, the Finance Minister told Parliament on Thursday November 24.
The seven-point agenda is ‘Aggressively mobilize domestic revenue; Streamline and rationalise expenditures; Boost local productive capacity; Promote and diversify exports; Protect the poor and vulnerable; Expand digital and climate-responsive physical infrastructure; and Implement structural and public sector reforms.’
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He also announced that the government will undertake major structural reforms in the public sector.
Commenting on this in a tweet, Mr Ablakwa said “Who could ever have imagined or predicted that Nana Addo Dankwa Akufo-Addo who led the fatal 1995 Kumepreko demonstration against the introduction of VAT under President Rawlings which tragically claimed the lives of Ahunu Ahonga & 5 others would today be increasing VAT by 2.5%.”
