2023 Budget: Abossey Okai Spare Parts Dealers Lament 2.5% Increment in VAT Rate

• The spare parts dealers say the review of the Value Added Tax (VAT) rate from 12.5 percent to 15 percent will only worsen their economic hardships
• The government announced the increment in the VAT rate by 2.5 percent during the budget reading in parliament on Thursday
• The Public Relations Officer for the Abossey Okai Spare Parts Dealers Association has also lamented the increment

Spare parts dealers in Abossey Okai have reacted to the review of the Value Added Tax (VAT) rate from 12.5 percent to 15 percent effective January 2023.

What is the added percentage?

The government announced the increment in the VAT rate by 2.5 percent during the presentation of the 2023 budget statement to parliament on Thursday, which they described as unfortunate.

Speaking to JoyNews, Public Relations Officer for the Abossey Okai Spare Parts Dealers Association, Eric Nsi bemoaned that the increment will only worsen the economic hardships of its members.

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“Though we had information that something like that will happen, it is quite unfortunate, because we sent a strong signal to the government that we are not in a position to receive this…it is only adding up to the economic hardship of the Ghanaian citizenry,” he said, according to JoyNews.

Eric Nsi lauds the government over

Nsi, however, lauded the decision to reduce government expenditure by freezing new tax waivers for foreign companies and a review of tax exemptions for free zone, mining, oil, and gas companies.

The Association said the move will reduce competition with foreign companies.

2023 Budget: Ato Forson Describes Policy Statement As Empty And Calls On Ghanaians To Brace Up For Hardships

Relatedly, YEN.com.gh reported that the Minority in Parliament painted a gloomy image of the Ghanaian economy following the reading of the 2023 Budget statement and economic policy document.

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“2023 budget is too wicked” – Kumasi business community rejects policy document

According to the Ranking Member of the Finance Committee, Dr Cassiel Ato Forson, the budget was empty and full of grammar.

The Finance Minister, Ken Ofori-Atta, during the presentation of the budget on Thursday, announced some austere measures, including a freeze on public sector employment, the introduction of new taxes, including an increase in Value Added Tax (VAT) by 2.5%, among others.

Source: YEN.com.gh