There Will Be No Increase In VAT - Finance Minister Says

The Minister of Finance, Ken Ofori-Atta, says there will be no increase in the Value Added Tax (VAT) as speculated. 

Mr Ofori-Atta appealed to the House and Ghanaians to stop taking directions on economic policies from Social Media. 

The Finance Minister allayed the fears of Ghanaians on an increase in the Value Added Tax on Thursday (July 19), while presenting the 2018 Mid-Year Budget Review to Parliament 

Presenting the Mid-Year Review of the Budget, Mr. Ofori Atta said though the country is not getting the needed revenue, there will not be a re-introduction of nuisance taxes which were earlier scrapped. 

He said government will intensify tax compliance measures in order to collect taxes due the country and noted that taxes would be imposed on luxury cars while personal income taxes would also be reviewed. 

He added that the government has eased the financial burden on Ghanaians due to prudent management of the resources it inherited eighteen (18) months ago, re-assuring Ghanaians that the cedi's battle against the dollar will be addressed. 

On health, the Finance Minister announced that the Naational Health Insurance Scheme (NHIS) levy of 2.5% will be maintained. Furthermore, the GETFUND levy of 2.5% has also been maintained.

Touching on the performance of the cedi, Mr. Ofori Atta attributed the depreciation of the currency to external pressures.  

He indicated that the cedi depreciated by 2.4% against the dollar in the first half of the year. This compares to the 17.2% seen in 2012. 

Mr. Ofori Atta was however optimistic that the cedi will appreciate in the second half of the year.

On debt to GDP, the Finance Minister said the ratio reduced for the first time in ten years.

The challenges at the financial sector did not skip the Finance Minister's review. 

He spoke about the collapse of the UT and Capital Banks saying the measure was in the interest of the companies and those who do business with them.

gbcghanaonline.com
---DECRYPTED---