Business

‘We’re disappointed’ – Kumasi business owners react to 2023 budget, ask MPs to reject it

The tax ideas in the Budget Statement were met with strong opposition from the dealers. They contend that the 2.5% increase in the Value Added Tax (VAT) will raise company expenses and put an additional strain on customers who are already trying to make ends meet.

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Ashanti Business Owners Association executive secretary Charles Kusi Appiah-Kubi said that they had anticipated that the government would be sympathetic to Ghanaians’ suffering and propose policies that are intended to lessen their situation.

“We are quite upset, and it appears that the administration has forgotten about the ground realities, in our opinion. Both our working capital and our disposable income have been impacted. The government should have taken care to develop policies that would protect enterprises while they were collapsing… We hope that the budget will not be approved by the legislature, according to Appiah Kubi, who was quoted by citinewsroom.com.

On Thursday, November 24, 2022, during his presentation of the 2023 budget and economic strategy on the floor of the parliament, Ofori-Atta stated that the increase in VAT was one of a seven-point plan to address the nation’s ongoing economic problems.

He added that the government is expecting to rake in rake in GH¢2.70 billion from the VAT which will now become 15% if approved by parliament, to be used for infrastructure development.

“Mr Speaker, the demand for roads has become the cry of many communities in the country. Unfortunately, with the current economic difficulties and the absence of a dedicated source of funding for road construction, it is difficult to meet these demands. In that regard, we are proposing the implementation of new revenue measures. The major one is an increase in the VAT rate by 2.5 percentage points.”

“This will be complemented by a major compliance programme to ensure that we derive the maximum yields from existing revenue handles,” the Finance Minister said.

“We are quite upset, and it appears that the administration has forgotten about the ground realities, in our opinion. Both our working capital and our disposable income have been impacted. The government should have taken care to develop policies that would protect enterprises while they were collapsing… We hope that the budget will not be approved by the legislature, according to Appiah Kubi, who was quoted by citinewsroom.com.

On Thursday, November 24, 2022, during his presentation of the 2023 budget and economic strategy on the floor of the parliament, Ofori-Atta stated that the increase in VAT was one of a seven-point plan to address the nation’s ongoing economic problems.

He continued by saying that the government anticipates earning GH2.70 billion from the VAT, which

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