Business News of 2014-06-19

Minority faults Finance Ministry, GRA over implementation of VAT Act

The Minority in Parliament has accused the Ministry of Finance of perpetuating illegality in the implementation of the Value Added Tax (VAT) Act.

Members of the caucus have, therefore, called on the Ministry to withdraw the taxes forthwith.

This demand was made by Dr Anthony Osei Akoto, the Minority’s Spokesperson on Finance, at a press conference on Thursday, June 19.

The Old Tafo Constituency representative in Parliament said members of the Minority foresaw the effects of the 17.5 per cent VAT, informing their decision to oppose its implementation.

He said the taxes have brought additional burden on consumers and businesses.

Dr Akoto Osei said government was wrong to “unilaterally produce a list of thirty-two financial services”.

He cited the VAT Act, Act 870, saying the taxes were to be charged “excluding financial services rendered for a fee, commission or similar charge”.

“So, if government wants to implement a lust of thirty-two items, the proper thing is for the Minister of Finance to come back to Parliament with the proper amendments.”

The Former Minister of State cited the Ghana Revenue Authority (GRA) as complicit with the Finance Ministry in the “illegality”.