The caretaker Finance Minister Osei Kyei-Mensah-Bonsu reading the 2021 budget statement and economic policy of the government said the Energy Sector Recovery Levy, COVID-19 Health Levy, and Sanitation and Pollution Levy are some of the revenue generation measures.
ADVERTISEMENT
Gov't explains and justifies the introduction of new taxes
Kwaku Kwarteng, the Chairman of the Finance Committee of Parliament, has justified the introduction of three levies and the decision by the government to increase taxes in the 2021 budget statement.
Kwaku Kwarteng
Recommended articles
He announced that an over 5% financial sector levy to cater for the banking sector clean-up. Road tolls will also see an upward adjustment.
The Minority Leader, Haruna Iddrisu, speaking on the budget statement said has stated that the decision by the government to increase taxes in the 2021 budget as a means of mobilising more revenue to support national development will only subject Ghanaians to more hardships.
According to him, the introduction of new taxes disguised as COVID-19 health levy, road toll increases, gaming tax, sanitation, and pollution levy as well as one percent upward adjustments in the value-added tax (VAT) flat rate and the Energy Sector Levy Act (ESLA) would only worsen the plight of the people.
ADVERTISEMENT
"Ghanaians will just have to brace up for increased hardships and increase suffering with this ‘blame and profit from the pandemic budget.
"It means that we will see some hikes in petroleum prices with the new taxes that have been introduced," he said.
But Kwaku Kwarteng has explained that the government is seeking to introduce the taxes to allow it to continue to provide more reliefs to Ghanaians.
In an interview with Accra-based Citi FM, he said the "Government introducing new taxes is sensitive. It would have been an easier option not to impose taxes because it is politically attractive for us (government) to say that we are providing the reliefs in the budget, but we will not impose any taxes.
"But it will only continue to destabilize the micro-economy in the medium term, and it is the ordinary Ghanaian that will suffer."
ADVERTISEMENT
"What we have done is to balance government’s ability to provide more support to Ghanaians but we’ve got to balance it otherwise it will hurt the economy."
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
French bank Société Générale exiting Ghana market
Glovo and 7 other businesses that have exited the Ghanaian market
Yango implements new safety features to protect riders and partner drivers in Ghana
Ghanaians call for business-friendly environment, improved economy amid Glovo exit
Glovo to stop operating in Ghana effective May 10, cites profitability concerns
MoMo transactions reached GH¢1.9 trillion in 2023 due to Interoperability — Bawumia
7 factors to consider before investing in a money market fund
China dethrones USA as the most influential global power in Africa: Report
