Increase in vat by 2.5% will widen poverty gap – Tax analyst

Must Read

A tax analyst, Geoffrey Ocansey has denoted the new tax measures presented by the finance minister Ken Ofori-Atta in the 2023 Budget Statement and Economic Policy as “Regressive”.

Mr. Ocansey noted that the vat increment has the potential of widening the poverty gap and pose pressure on people already overwhelmed with taxes.

His remarks follows the announcement made by the finance minister, Ken Ofori-Atta in government’s 2023 budget statement and Economic Policy about the 2.5 percent increase in VAT.

- Advertisement -

The Finance Minister further made it known that the increase in the VAT is expected to yield GH¢2.70 billion, which will be used to boost funding for road infrastructure development.

The government also reduced the rate of the Electronic Transaction Levy (e-levy) from 1.5 percent to 1 per cent and removed the 100 Ghana cedi threshold introduced, to cushion the vulnerable in society.

Mr. Ocansey whiles sharing his view on the government’s decision said “It is highly regressive, especially when you take the VAT, the increment of 2.5 percent, you have transferred cost from the sellers to consumers, and you have done it on a mass scale.

- Advertisement -

“The less privileged who are receiving stagnant salaries, those who have lost their jobs, pensioners, they are all on that scale, and they are going to be buying and competing with those who earn high salaries. It is so regressive that they are going to widen the poverty gap,” Mr. Ocansey told Nathan Quao on the Citi Breakfast Show.

More Latest Stories

spot_img

Most Read This Week

spot_img
spot_img
spot_img

ADVERTISEMENT

spot_img