North Tongu Member of Parliament Samuel Okudzeto Ablakwa has expressed his dismay at the decision by the Akufo-Addo administration to increase the Value Added Tax (VAT) by 2.5 per cent.
According to the avid critic of the Akufo-Addo government, he is in disbelief over the increment of the VAT, something the current president led a demonstration against.
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.’
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%.
The government is projected to embark on aggressive revenue mobilization in 2023, a measure that seeks to corrects the fiscal imbalance and deficit.