No VAT increase in mid-year budget according to government sources

No VAT increase in mid-year budget according to government sources

- Sources close to the Finance Ministry say government has suspended intentions of increasing VAT rate

- The minister, Mr Ken Ofori-Atta, will present the mid-year budget before Parliament in July 19

Government has frozen proposals to increase the rate of the Value Added Tax (VAT). This is according to a report by myjoyonline.com, which intimates of information from close government sources.

This suspension is certainly a response to the furore that was generated in the wake of rumours. Sometime last week, sources from the office Finance Ministry hinted of government's intention to increase the VAT rate from 17.5% to 21%.

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This was met with a lot of anger and reservations from the general public and civil society. Opposition party the National Democratic Congress (NDC) even spoke of taking to the streets to show their rejection.

No VAT increase

The minister of finance is expected to present the mid-year budget before Parliament on July 19. Photo credit: Google Images

According to the report cited by YEN.com.gh, the president Nana Akufo-Addo, was concerned by the implications the rate increase could have on Ghanaians. He therefore instructed the finance minister to cease the initiative.

The finance minister, Ken Ofori-Atta has since been tasked to seek other and further means of generating revenue to augment government's needs.

On Thursday July 19, Mr Ofori-Atta is scheduled to present the mid-year budget in the house of Parliament.

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He is expected to make known to the general public, government's fiscal plans for the rest of the year. He will also seek to outline the alternative means by which Ghana will raise funds other than a VAT increase.

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Source: Yen.com.gh

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