Finance Minister, Ken Ofori-Atta has advised the opposition National Democratic Congress (NDC) to stop taking direction on economic policies from social media.
NDC after hearing reports that the ruling government was going to increase VAT from 17.5% to 21.5% vowed to fight any such increment.
The Minority had predicted the government will increase taxes to fund its revenue-demanding policies.
Former Deputy Finance Minister, Cassiel Ato Forson had indicated that he expects a review of at least three existing taxes and a possible introduction of two new taxes.
However, presenting the mid-year budget review in Parliament, Thursday, the Finance Minister debunked reports that there will be any VAT increment and urged the opposition to “stop taking directions on economic policies from social media”.
The renewed public scrutiny of the VAT follows a report by a pro-NPP newspaper, The New Statesman, suggested that government may announce an increase in the VAT and the National Insurance Levy in the Mid-Year Budget Review.
The report suggested that VAT and NHIL may be increased from 17.5 percent to 21.5 percent.
Ahead of the mid-year budget presentation to Parliament, Gabby Asare Otchere-Darko hinted that government will increase tax to raise more revenue.
In a Facebook post last Thursday, the former Director of think tank, Danquah Institute wrote: “will you support a VAT increase to keep your lights on, your secondary schools filled, your school kids fed, your streets clean, your streets safe, young graduates employed, and decent, affordable homes built for working families?”
Reacting to the development, former President, John Dramani Mahama said the intended plan will worsen the hardship being experienced by Ghanaian businesses.
“The Ghanaian business sector has never experienced such difficult times in the history of the 4th Republic. Akufo-Addo’s proposed new taxes would cripple businesses further and also defeat his much-touted mantra of “from taxation to production,” the former leader said in a Tweet.