Parliament, by a majority decision, late Friday night passed three tax bills to help rake in GH₵4 billion annually to shore up government’s revenue portfolio.
The passage of the Income Tax Amendment Bill, the Excise Duty Amendment Bill and the Growth and Sustainability Amendment Bill is one of the conditions precedent for Ghana to secure a US$3 billion International Monetary Fund bailout.
The passage of the bills was not without opposition from the Minority who at every point of the legislative process called for a vote on the bills.
In all instances, the caucus lost 136 to 137 votes to the Majority in a long sitting which stretched into Saturday.
According to the government, the new tax measures would improve Ghana’s tax to GDP from about the current 12 per cent to about 18 as Ghana takes steps to meet the sub Saharan average of 20 per cent.
Expressing their opposition to the new taxes, the Minority said the living standard of the Ghanaian would be worse of, if the taxes were approved.
“Any attempt to increase [taxes] will mean that the ordinary Ghanaian is going to suffer.
“Already, disposable incomes have been reduced but what this government intends to do is to impose additional taxes on consumables like water and alcoholic beverages.
“Ghanaians are already going through very difficult times and this is not the time for us to increase the prices of goods and services,” caucus leader, Dr CassielAto Baah Forson, espoused.
In his view government would save GH₵61 billion from the debt exchange programme for the year and that the “insignificant” GH₵4 billion should be given to the people as a form of relief from the worsening economy.
But the Majority said the new taxes have become a necessity to navigate Ghana through the turbulent economic climate and protect the health of the people.
A Deputy Minister of Finance, Abena Osei-Asare and MP for Atiwa East, said the government was not only raising revenue but for health reasons as well; a reason why government had included certain items like alcohol, tobacco and sugary items in the schedule.
“Government is seeking to harmonise the way these items are listed on the schedule compared to what is done internationally,” she said.
In response to claims that government would be making a saving of about GH₵60 billion as a result of the debt exchange programme, Mr Osei-Asare said the Minority Leader was miscalculating the savings.
“There is a deficit we have to address so once we make some savings, it should reduce our deficit,” she said.
BY JULIUS YAO PETETSI
