The Minority Caucus in parliament has accused the government of clandestinely introducing 22 more tax and revenue measures in the 2023 budget.
The Minority Leader Haruna Iddrisu, addressing the media on behalf of his colleagues on Monday, said the budget for next year seeks to worsen the plight of Ghanaians instead of giving them hope.
“In addition to the increase in VAT, we have detected twenty-two additional tax and revenue measures that will make life even more difficult and unbearable for every Ghanaian.”
He therefore berated the Akufo-Addo-led government for piling “more hardships” on the already suffering Ghanaians.
“The most punitive among these taxes is the addition of 2.5% to the VAT rate bringing it to a cumulative 21.5% (made up of 2.5% GETFund, 2.5% National Health Insurance, 1% Covid Levy and 15% VAT all levied under the terms of Value Added Act, Act 870) the highest in Africa.
“What moral right does President Akufo-Addo have to increase VAT by 2.5% when he led the “KUMI PREKO” demonstration in 1995 resulting in the loss of five lives.”
The Minority Leader underscored the fact that the increment in VAT would cause prices of almost all items to increase instantaneously once it comes into effect.
Admitting that the National Democratic Congress, as social democrats, are not against taxation, but said they are simply unable to agree with what they termed the “steep increase and timing of the introduction of these tax measures”.
Haruna Iddrisu said, “at a time when people are facing the worst economic crisis and hardships in their lifetime, the last thing that is desired is further taxation.
“The high rate of inflation has already eroded the disposable incomes of Ghanaians and we can no longer bear to give more to a government that is determined to waste our resources on extravagant living.”
Debt Exchange Programme
Meanwhile, Haruna Iddrisu who is also the Member of Parliament for Tamale South said the Minority would not accept the debt restructuring in its current form as launched by the finance minister on Monday.
The Debt Exchange Programme, as termed by the government, is to help restore confidence in the system as government introduces wide-ranging structural and fiscal reforms to restore fiscal and debt sustainability and support growth.
But the Minority said they cannot accept it because it will bring dire consequences on Ghanaian investors.
“Let me state without any fear of contradiction that the form and structure of the debt restructuring announced by Finance Minister Ken Ofori-Atta this morning are unacceptable to us and we simply will not accept it.”
He also felt his side has been vindicated about the true state of Ghana’s public debt stock.
“We can also state with absolute certainty, that after years of denial and falsification of our debt numbers through the exclusion of debts owed by SoES, contingent liabilities, and debts on the books of dodgy Special Purpose Vehicles, the Akufo-Addo government has finally capitulated and accepted the reality that we owe far more than they have been admitting.
“Contrary to the Finance Minister’s claim in the 2023 budget presented barely a week ago, that our debt to GDP ratio was 76%, government has now admitted that it is actually an unthinkable 105%.
“This puts our actual public debt well above GHS 500 billion.”