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July 17, 2018 | Feature Article

The VAT Increment Is Currently A Difficult But Necessary Proposal For Ghana

The VAT Increment Is Currently A Difficult But Necessary Proposal For Ghana

All the activities of the President Nana Addo Dankwa Akufo-Addo led government such as the introduction and the rejuvenation of some social interventions, reduction in numerous taxes, large scale public sector recruitment, rejuvenation of the private sector, increment and settlement of arrears in the public sector, among others within eighteen months in office show vividly that this government's proposal to consider an increment in the Value Added Tax (VAT) from 17.5% to 21.5% in its 2018 mid-year review budget is never on their part to intentionally slightly raise the cost of living in the country.

In fact, all the initiatives stated above under the rule of this NPP government as well as the drop/dismissal of the road toll, NSS insurance, TV License, among other levies all clearly display that the quest of the government has never been to burden it's citizens, but rather to lessen the economic burden of the citizens, and also boost the business environment to help the private sector to develop, these facts as a result make it very evident that if an increment in the VAT isn't important for the economic good of the country, this government would never risk a consideration.

Let us bear in mind that, the economy under former President John Dramani Mahama of which the nation was witnessing a halt to employment, non payment of pension allowance, cancellation of the training college allowance, intensive electricity power crisis, highly unsustainable debt, among others, is the same economy this current President Nana Addo government inherited of which we are currently witnessing over 200,000 public sector recruitment, stable power supply ( that's bringing an end to dumsor), implementation of the free Senior High School policy, reduction in electricity tariffs and numerous taxes, improved economic indicators, payment of pension allowances, settlement of arrears of the NHIS, West African Gas Pipeline, Senior High Schools, BOST, School Feeding Programme, Teachers and contractors, restoration of Training College allowance, settlement of national debts, increased capitation grant and district assembly common fund, implementation of the Ghana card and Ghana Post Code, Regional divisions, One Village One Dam, implementation of the Zongo Development Fund policy, among others.

Have we therefore as a people considered how an economy that was considered dead under former President Mahama has all of a sudden gain life under the leadership of H.E Nana Akufo-Addo, have we carefully weighed the positive impact of these initiatives by this government on the entire citizens of Ghana, and finally have we taken into account the source of funding of all these happenings under President Nana Addo, and how we intend to get it sustained? The sustenance of this consistent economic progress of the nation has, therefore, become necessary for all to help in the take of this bitter but necessary pill for the quick forward march of Ghana through an acceptance by all for an increment in the current VAT value.

Again, please Ghanaians, let us embrace it for the sake of the nation because President Nana Addo thinks of nothing except the general welfare of Ghanaians and the nation's development.

Below is the history of the VAT value increments in Ghana.

1998- 10% (NDC/H.E Rawlings)
1999- From 10% to 12.5% (NDC/H.E Rawlings)
2008- From 12.5% to 15% (NPP/H.E Kufuor)
2013- From 15% to 17.5% (NDC/H.E Mahama)
Thank you
Hhhmm, may God be praised always
Nana Kwadwo Akwaa
0246913905 / 0209676413
Member, Critical Thinkers International (CTI)

Nana Kwadwo Akwaa
Nana Kwadwo Akwaa

The author has authored 39 publications on Modern Ghana.
Author's column: NanaKwadwoAkwaa

Disclaimer: "The views/contents expressed in this article are the sole responsibility of Nana Kwadwo Akwaa and do not neccessarily reflect those of Modern Ghana. Modern Ghana will not be responsible or liable for any inaccurate or incorrect statements contained in this article."

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