Home Politics VAT to be increased to 18.5% ?

VAT to be increased to 18.5% ?

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Finance Minister Ken Ofori Atta is expected to present the government’s mid-year budget review to Parliament next week.

Ahead of the presentation, some economists are proposing a tax rise to help the government raise more revenue to fund its ambitious programmes.

Dr Osei-Asibey, in his proposal, is asking the Finance Minister to consider imposing excise tax on the importation and use of all forms of plastic materials.
This, he says, is intended to achieve two purposes of helping in revenue enhancement and environmental conservation through improved sanitation.

He also wants the Minister to increase VAT by one per cent to 18.5% and ring-fence the proceeds to fund the flagship free senior high school programme.
“Given the volatile nature of oil revenues, this will ensure sustainable financing and to ease the heavy fiscal burden that will be imminent in the in the near future when the full programme is rolled out. I believe every social policy measure must be paid for by citizens either directly or indirectly to ensure sustainability,” he stated in his memo to the Finance Minister.

Speaking in an interview with the Daily Statesman, Dr Osei-Assibey said even though payment of taxes would never be a pleasant duty for any citizen, “we must all be prepared to meet that civic obligation.”
“We are in this business of nation building together; it’s not only government who has the responsibility. Citizens must be prepared to pay to fund our development agenda. That is the only way government can generate money to fix the bad roads, tackle the poor conditions in our hospitals and more importantly fund the bold social intervention programmes like the free SHS,” he stressed.
Touching on the proposal for one per cent increase in VAT to fund the free SHS programme, Dr Osei-Assibey said he expects Ghanaians not to see this as additional burden.

Source: The Daily Statesman