ACCRA, Nov 19 (Reuters) - Ghana's government has asked parliament to approve an increase in the rate of Value Added Tax from 10 percent to 12.5 percent to replace revenue lost because of falling world gold and cocoa prices.
Finance ministry sources told Reuters that the draft law had been submitted to parliament's business committee.
The government, which meets donors in a Consultative Group in the capital Accra on November 23-24 to discuss economic policy and performance, had hoped for a quick debate on the issue.
The ministry sources said the government was keen to show the Consultative Group it was taking action to recoup income lost as a result of the slump in world prices of gold and cocoa, its main exports.
Parliamentary sources said the committee declined to consider the matter immediately, quoting regulations allowing members of parliament two weeks to prepare for any debate.
The government tried to introduce 17.5 percent VAT in 1995, sparking riots in which five people died. It withdrew the tax. It reintroduced the VAT at 10 percent on December 30 1998, without any major problems.
