Majority to support tax increase

The Majority in Parliament has indicated that it will support a proposal by the government to increase taxes if it is announced by the Finance Minister in the mid-year budget statement.

Even before it is presented, media reports suggest that VAT could be increased from 17.5% to 21.5%.

Other taxes may also be increased or new ones introduced.

After this got into the public domain, the general public have registered their displeasure about it.

Businesses have also threatened to pass the increament on to the consumers.

However, the Deputy Majority Chief Whip, Matthew Nyindam, said the revenue generated from increased taxes will be used to fix the country's current challenges.

“If VAT will be increased to provide the needed medical care for the poor and vulnerable, I am all up for it. The impact is going to be positive; it is not going to be negative,” he told Accra-based Class FM.

Meanwhile, the Ranking Member of the Finance Committee, Cassiel Ato Forson, has told Ghanaians to brace themselves for more hardship in the coming days.