The government is not planning to increase the Value Added Tax (VAT), the Member of Parliament (MP) for  Ledzokuku Constituency, Dr. Bernard Okoe Boye, has allayed all the fears of businesses.

READ MORE: "Shush up" - Gabby fires Mahama over his comments on proposed VAT hike

Speaking on Accra-based Citi FM on Saturday, the promising first time MP said the government is only contemplating innovative ways of raising revenue in a way that will not be destructive to businesses.

"There will not be any VAT increase. What is happening is that government is contemplating very innovative ways of raising revenue in a manner that will be least destructive to business and bring as minimal discomfort to citizens,” he said.

The debate about the potential increase in VAT was sparked by a publication in the Daily Statesman newspaper last Friday.

According to the newspaper, the government is mulling increasing the VAT from 17.5 per cent to 21.5 per cent.

READ MORE: Ghanaian businesses suffering- Mahama warns against VAT hike

Ex-president John Mahama waded into the debate, warning that the move could cripple already suffering Ghanaian businesses.

Analysts have also warned that any hike in VAT may lead to high cost of goods and services.