ACCRA: A public outcry has followed Ghana’s introduction of the 17,5 percent value-added tax. Parliamentarians have argued the move announced by the Ghana Revenue Authority would add more suffering to the overburdened majority.
Akyem Abuakwa North Member of Parliament, J. B. Danquah-Adu, said the new tax regime was driving Ghanaians away to Ivory Coast and other economic friendlier West African countries.
He said Ghana’s economy was now heavily relying on heavy taxes, a development he said would scare potential investors from the country.
“The 17,5 percent VAT will suffocate and kill us. There are so many ways of raising revenue but this is not one of them,” he said.
“People are relocating to Cote D’Ivoire because the environment is attractive,” Danquah-Adu said.
However, Finance Minister, Seth Tekper, denied that the government would not charge people the full 17,5 tax as claimed by the legislator.
“We are not taxing all banking services. Your interest on savings is not going to be taxed, interest on whatever accounts you have are not going to be taxed.
“It is only the non-core services which have been listed that are going to be taxed,” Tekper said.
The tax, which was put on hold in 2014 but has since been effected, compels all 28 universal banks in Ghana to charge 17,5 VAT on some financial services.
SOURCE: CAJ NEWS AGENCY