Parliament last night, Wednesday, December 21, 2022 approved the 2.5 per dent Value Added Tax (VAT) increase.
Despite the Minority NDC MP’s opposition, the Majority had its way with a headcount victory of 136 as against 135.
This means Ghanaians will be paying more for goods and services in 2023.
Government through the 2023 Budget Statement and Economic Policy is seeking to intensify efforts at mobilizing domestic revenues to help finance its transformative agenda and help build back the Ghanaian economy from the ravages of the Coronavirus pandemic and the adverse effects of the geopolitical tension between Russia and Ukraine.
Finance Minister, Ken Ofori-Atta made this known during the presentation of the 2023 Budget Statement and Economic Policy in Parliament on Thursday, November 23, 2022.
He said with dwindling revenue streams attributable to a slowdown in business activities occasioned by a global recession, Ghana is behind most of its peers within the West African sub-region as far as Tax to Gross Domestic Product (GDP) is concerned. While Ghana is doing below 15 per cent, countries in the sub-region like Cote d’Ivoire and Nigeria are hovering around an average of 18 per cent.
Mr Ofori-Atta, in his budget presentation, explained that it has led the government to expand the tax net and implement tax-efficient measures to increase its revenue streams and shore up government finances.