Government backs away from VAT rate increase

Reports indicate that the government will no longer increase the rate for Value Added Tax (VAT), as earlier suggested by people close to the government.

The Minority in Parliament earlier this week launched a scathing attack on the Akufo Addo administration describing it as an insensitive government, for planning to introduce new taxes and increase existing ones.

Minority Spokesperson on Finance, Cassiel Ato Forson at a Minority Mid-year budget roundtable said government will in the mid-year budget review which will be presented to Parliament tomorrow (July 19, 2018) announce excise tax on luxury vehicles (10 percent on vehicles with engine capacity above 3.5 cc), an increase in the communications service tax (from 6 percent to up to 12 percent) and the re-introduction of VAT on financial services which was scrapped in the 2017 budget.

Speaking at the Minority mid-year budget roundtable, Cassiel Ato Forson said the economy was heading towards dangerous terrain.

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