Tough days dey ahead for Ghana as govment increase Value Added Tax (VAT) by 2.5% on Thursday.
Dis dey increase VAT from 12.5% to 15%, de latest announcement mean say de prices of goods go go up so far as e get VAT component.
Dis be part of efforts to increase de revenue generation drive of govment.
Finance minister, Ken Ofori Atta make dis announcement during de reading of de 2023 budget for parliament today.
As part of efforts to widen de tax net, govment also reduce electronic transactions levy from 1.5% to 1%.
Also, govment remove de transaction threshold of Ghc100 which dey attract e-levy charges.
What dis dey mean be say govment go fit collect e-levy charges on every transaction so far as pesin dey use mobile money/electronic transactions.
Frankly speaking, Ghana's 2023 budget presented to parliament this morning has no relief for Ghanaians looking at the economic hardship now.
— Samson Mensah (@SamMensO) November 24, 2022
Increasing VAT by 2.5% is going to be paid by the poor consumer. On e-levy, from onset government has already changed every penny. Eiiiii
Govment announce some expenditure cuts
Finance Minister, Ken Ofori Atta reveal say as part of plans to reduce govment expenditure, dem dey introduce some measures.
- Ban on use of V8 and V6 vehicles except tor cross country travels
- Hiring freeze on civil and public servants
- No printing of diaries and calendars for 2023
- Freeze on non-critical projects in 2023
Minority say budget go introduce hardship on Ghanaians
According to Finance Minister, Ghana dey work towards securing IMF agreement, debt exchange program den work with local suppliers towards food security in de kontri.
Minority lawmakers however say govment move de burden on ordinary citizens who go pay more taxes from 2023.
Dem feel say de expenditure cuts wey govment announce be very small in terms of how much dey go into dem.
