No increase in VAT - Ken Ofori Atta

BY: Enoch Darfah Frimpong
Finance Minister Ken Ofori Atta and Vice President Dr Mahamudu Bawumia
Finance Minister Ken Ofori Atta and Vice President Dr Mahamudu Bawumia

The Minister of Finance, Mr Ken Ofori Atta has announced that there will be no increase in Value Added Tax (VAT) as speculated.

"I will also like to advise our friends [Minority], that we should stop taking directions on economic policy from social media. Mr Speaker, VAT will be maintained at 12 and half percent," Mr Ofori Atta said whilst presenting the mid-year budget review in Parliament on Thursday.

Read also: Minority brands Ofori-Atta 'Minister of Loans'

He explained the measures were to ensure that the country meets its fiscal deficit target of 4.5 per cent and ensure that the country exit the International Monetary Fund (IMF) programme.

There were suggestions ahead of the budget review that government was going to add three per cent to VAT.

Following the speculation, the Minority in Parliament launched an attack on the Akufo-Addo led government and described it as an insensitive government

The Minority Spokesperson on Finance, Mr Cassiel Ato Forson at a press conference said the economy was heading towards a dangerous terrain.

Read also: Gov’t imposes tax on luxury vehicles

But explaining, Mr Ofori Atta said: "We are converting the National Health Insurance of 2.5 per cent to a straight levy of 2.5 per cent. Mr Speaker, we are converting the GETFund Value Added Tax rate of 2.5 per cent to a strict levy of 2.5 per cent."

"Mr Speaker, VAT will thus be maintained at 12 and a half per cent.

Related: All eyes on Finance Minister as he presents mid-year budget review today

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