Government backs away from VAT increment

The Minister of Finance, Ken Ofori Atta, has said “there will be no increase in Value Added Tax (VAT)” contrary to earlier reports that government was going to announce an increase in the rate for VAT.

“There will be no increase in VAT as has been speculated. VAT will be maintained,” the minister said during the presentation of the mid-year budget review in Parliament on Thursday.

“We should stop taking economic policy directives from Social Media,” he cautioned.

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 (July 19, 2018) announce excise tax on luxury vehicles (10% on vehicles with engine capacity above 3.5 cc), an increase in the communications service tax (from 6% to up to 12%) and the re-introduction of VAT on financial services which was scrapped in the 2017 budget.

Gbcghanaonline.com
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