The Minority in Parliament on Tuesday said it was opposed to the National Reconstruction Levy (NRL) in principle and would never be for it.

They thought of it as " killing capital formation, suffocating of the private sector, a display of bad faith by government, among other criticisms.

The group had restated their position when the National Reconstruction Levy (amendment ) (No. 2) bill went through the second reading in the House.

The bill seeks to amend the NRL Act 2001 (Act 597) to apply the act by imposing a levy of five per cent on Non-Banking Financial Institutions.

A report of the Committee of Finance said it was informed that the amendment was necessary in view of the need for the various companies, especially Non-Banking Financial Institutions to respond to the national call for their contribution, apart from their corporate responsibilities.

Mr Moses Asaga, Minority Spokesman on Finance, said Banks and other players in the private sector should be encouraged to initiate and grow funds instead of the Presidency.

He said the introduction of the venture capital fund, the reason for the extension of the NRL, was a contradiction of the philosophy of the ruling New Patriotic Party, which dwells on an aggressive private sector development.

Mr John Mahama,NDC-Bole-Bambio, said government had shown bad faith by extending the duration of the NRL.

According to the member, the multiplicity of taxes and levies in the country conspire to make Ghana a high cost destination of business transaction.

"Government is quick to tax industries but hesitant in protecting them. We remember the import tax on rice and poultry products which never took effect."

He said:"If the private sector is making profit, why do you take money from them. After all you are apostles of free enterprise."

Mr Hackman Owusu Agyeman, Minister of Interior, said the Minority as adherents of socialism and "welfarism" were contradicting themselves as the bill sought to take from the powerful to help the poor.

"If Capitalists like us are saying let us share the resources and nurture the weak, you (Minority) have no business criticising us."

Mr Yaw Osafo Maafo, Minister of Finance and Economic Planning, said eligible entities would not be levied if they do not make profit.

He said a study of the Non-Banking Financial sector during the 2001/2002 fiscal year revealed that 13 of them made profit which far exceeded all the insurance companies in the country.

"We have the justification, the justification is there." He said.

He said 25 per cent of the levy would flow into a venture capital fund to provide interest-free equity to teething local industries.