The Minority has said the government of the National Democratic Congress (NDC) was honest to Ghanaians about the state of Ghana’s economy in the run-up to the 2016 elections but the promises made by Nana Addo swayed votes in his favour.
The Minority’s critique comes in the wake of a report suggesting VAT and NHIL may be increased from 17.5 percent to 21.5 percent.
Minority Spokesperson on Finance, Cassiel Ato Forson said the economy is heading towards dangerous times.
In an interview on Accra-based Starr FM ahead of the mid-year review budget and economic policy of the government to be delivered by Minister for Finance, Ken Ofori-Atta on July 19, 2018, Cassiel Ato Forson said President Nana Addo Dankwa Akufo-Addo is delivering hell to Ghanaians contrary to his juicy promises.
He said “We heard Akufo-Addo before the elections…he said they will move this country from taxation to production. NPP promised heaven but they have delivered and continue to deliver hell to us all.”
He added: “amidst deliberate misrepresentation of the facts about our debt position, its computation and rationale for borrowing, they also claimed to possess the magic to mobilize domestic resources to finance their campaign promises. They dismissed borrowing as “a lazy approach” to economic management and promised a different paradigm.”
“Contrary to these claims, our public debt has ballooned to GH¢ 154 billion (excluding the Energy Bond of GHC 4.7 Billion) as of May, 2018 from GH¢ 122 billion in January 2017,” he stated noting “it is expected to increase further by GH¢3.8 billion – (1.7 billion + 1.4 billion + 0.7 billion)–should the financing plan specified above, i.e. selling state assets, prepayment of license fees, and monetization of mineral royalties, fail to materialize,” he stated.
The government has hinted at increasing taxes in its mid-year budget review.
The government is considering introducing taxes such as:
An increase in Communications Service Tax from 6% to 12%?
A mandated minimum corporate tax
An expanded stabilisation tax?
Collateralising royalties from minerals to enable the government to raise loans
Increased social security (SSNIT) contributions to the NHIS?
A Financial Service Tax