‘It’ll be a Big Curse to Increase VAT’ – Allotey Jacobs

Bernard Allotey Jacobs, the Central Regional Chairman of the opposition National Democratic Congress (NDC) has stated categorically that, it will be a great curse for the Nana Addo administration to increase tax.

Ahead of the mid-year budget presentation to Parliament on Thursday, reports are rife that government will increase tax to raise more revenue for the development of the country.

There have been speculations that government might increase the VAT rate from the current 17.5% to 21%.Others also speculate that government is seeking to increase the 2.5% NHIS levy on VAT to 3.5%.

Mr Allotey speaking to Peace FM Kokrokoo Morning Show stated, it will be a great dis-service and curse for the NPP administration to think of increasing tax.

”…See Ghanaians are suffering, the NPP government never promised them tax increment. Any sort of increment will bring more danger to the people of the country. If the NPP go ahead with their VAT increment, it will be a great curse on them; you can’t spit and take it back. Ghanaians are suffering…even common staple foods are expensive and now you want to worsen it by bringing tax increment. We didn’t’ ask for free SHS; you said you can do it and now you have turned around to impose tax on the poor whose children are enjoying the free SHS”   – he said.

According to him, the ‘Kumi Preko’ demonstration which was led by President Akufo-Addo at the time of former President Rawlings administration was clearly against TAX increment so why another means to increase at this time.

Explaining further, he said the Ghana Grid Company Limited (GRIDCo) is at the merge of collapsing and that another increment will be at a very high risk to Ghamnains.