‘Ghana’s economy doomed’

Minority Caucus in Parliament has predicted doom for the country’s economy if the handlers of the economy do not change the direction it is heading.

According to them, “the economy is challenged because of the government’s haste in implementing its numerous political campaign promises.

The Minority Members of Parliament (MPs) made the observation in Accra yesterday ahead of Thursday, July 19, 2018 Mid-Year Budget Review by the Minister of Finance, Ken Ofori-Atta.

Addressing the media yesterday, the Minority Spokesperson on Finance, Mr Cassiel Ato Baah Forson, claimed that the ruling New Patriotic Party (NPP) will increase taxes when it presents its mid-year budget review, something he said, the NPP then in opposition spoke against.

“The current crisis confronting the managers of the economy, compelling them to impose a raft of taxes on already burdened populace is self-imposed,” the minority’s spokesperson said.

He further explained that the fiscal problem the country was experiencing was as a direct result of shallow opportunism and populism.

“It is obvious that the promises made by the NPP in 2016 and their initial action as contained in the 2017 budget were intended only to get them elected.

“The reality, however, is that it has led to a major problem for the economy, translating into severe hardship for the generality of our people,” Mr Forson added.

According to him, the government was considering increasing the Communications Service Tax, from 6% to 12%, Valued Added Tax (VAT) from 17.5% to 21%, Financial Service Tax while it will also introduce a mandated minimum corporate tax, an expanded stabilisation tax, collaterising royalties from minerals to enable government raise loans,

The country’s Financial Management Administration Act requires the finance minister to come before Parliament not later than July 31, and submit to Parliament a Mid-Year Fiscal Policy review.

 

Story: Franklin ASARE-DONKOH

Writer’s email: franklin.asare-donkor.todaygh.com

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