The Taxpayer Alliance of Ghana (TPAG) has made key proposals to Minister of Finance, Seth Terkper asking him to consider reducing and withdrawing certain taxes in the 2016 budget.
TPAG made the appeal in a press statement signed by its Executive Director, Frank Asiedu Bekoe yesterday.
Minister of Finance, Seth Terkper, is expected to deliver the 2016 Budget to legislators this morning in Parliament.
Proposals
But the Alliance wants certain taxes that are worsening the plight of Ghanaians to be scrapped or reduced in the 2016 budget.
TPAG, in the statement, called on government to “shelve the 17.5 percent VAT on sachet water.”
It argued that the Finance Minister and government should also halt any attempts to increase road tolls which are already high.
Transport operators will pass on the cost to commuters and the impact on their economic life will be severe.”
The Minister must indicate clearly plans to stop or reduce excessive borrowing, which has ballooned the country’s public debt stock to GHC94 billion, representing more than 70 percent of GDP.”
“Mr. Terkper must outline in clear terms the government’s intention to stop borrowing from the domestic market to free credit to the private sector. Obviously, excessive domestic borrowing is crowding out the private sector in the country.”
It proposed that government and the Finance Minister must assure the youth about how the 2016 budget is poised to create jobs.”
“TPAG is concerned that manufacturing is growing at a dismal -8.0% while growth in agriculture slows to a disappointing 5.0%. The downward growth spiral in these key sectors will affect job creation and job security,” it said.
Government’s excessive borrowing and mismanagement of the country’s economy has been a source of worry for many Ghanaians who will be eager to know this morning what concrete plans the government has made to address the economic crisis confronting the country in the coming year.
Observation
The TPAG, it would be recalled, raised concerns about the numerous tax policy initiatives in the 2015 budget and called on the Minister of Finance to withdraw some of them entirely and reduce others.
The Alliance was concerned about the 5 percent flat VAT imposed on real estate development.
TPAG said that prospective buyers would pay very expensive prices for houses.
Also, the Alliance, which raised concerns about the 17.5 percent VAT on petroleum products, stated that its introduction would lead to petroleum price hikes.
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