In order to gain their support, the minority in parliament has urged the government to seriously consider further lowering the e-levy rate to 0.5 percent and establishing a daily tax-free threshold of 300 cedis.
Haruna Iddrisu, the minority leader, stated that his Caucus will vigorously advocate for such in Parliament.
The government declared last Thursday that it will lower the rate from 1.5 percent to 1 percent and eliminate the daily tax-free threshold of 100 cedis. Any transferred money is therefore taxable.
The Minority Leader stated that such a review will have a worsened impact on the poor Ghanaian during the inaugural ceremony of the post budget workshop in Ho.
He consequently pleaded with the authorities to rethink the new rate.
Without getting into the scenarios, I’ll say, “As you look at your scenarios, consider for example of 0.5% at a threshold of 300 as compared to what you have admitted of 1% at zero threshold. We will submit it to a further critical and extensive talks as a caucus.”
The congressman for Temale South stated that his party had not yet made up its mind regarding the suggested rise of the VAT rate by 2.5 percent.
However, he cautioned that it can have disastrous effects on enterprises.
But according to Finance Minister Ken Ofori-Atta, the government’s inability to access the global market has made the measures crucial for raising domestic revenue.
He believes that these taxation policies are essential for saving Ghana’s economy from total collapse.
As a result, the troubled minister urged lawmakers to back the bills and get them passed on time.
According to Finance Minister Ken Ofori-Atta, “it has become increasingly necessary to mobilize some local revenue as our access to the international market has been largely limited and our debt levels have increased,” on Thursday, November 24, during the introduction of the 2023 budget.