New VAT Rate Will Kill Ghanaian Businesses � J. B. Danquah

The Member of Parliament for Abuakwa North, J. B. Danquah has predicted that Ghanaian business will begin to suffer due to the recent increases in taxes and utility tarrifs. There has been an increase in VAT rate, taxes, utility tariffs and the price of petroleum products. This has caused a rippling effect on the cost of goods and services across the country. Mr. Danquah speaking on Eyewitness News pointed out that �there is nothing wrong in raising revenue from taxes� but the introduction of the new Value Added Tax (VAT) rates and the businesses which have been roped into the VAT net �is going to be damaging to businesses and even to the ordinary household.� According to him, government�s quest to ensure small business gain access to credit facilities to grow their businesses will be thwarted because of the new taxes. �We are asking the banks to reduce interest charges or interest rates, yet, the government is increasing the VAT on financial services and this is not acceptable,� he insisted. This he noted will prevent local businesses from being �competitive in this day and age and that is why Ghanaian businesses are going to suffer� The Abuakwa North MP urged government and the Finance Ministry �to tackle the new rate of VAT, especially, on the financial services and the others.� Source: Citifmonline