Dr. Kofi Konadu Apraku, Minister- designate of Trade and Industries said on Wednesday the government will not bow to pressures to increase the Value Added Tax (VAT)rate.
"We will not succumb to any World Bank conditionalities if they are not favourable to the economy of the country," he said. Speaking to the GNA, Dr Apraku said the government is not prepared to negotiate an increase in the VAT even if the World Bank suggested it.
"Increasing VAT is not in our programme, it is not in the works at all. We cannot at this stage be thinking of increasing VAT. It is not the thinking of the government".
The Minister-designate said people have rather been calling for reduction in VAT and it would not be appropriate to increase it. On the call by the business community for the reduction of taxes on imported goods, Dr Apraku said it is premature to promise a reduction even though the objective of the NPP government is to advance the interest of private enterprise.
He stressed the need to do an in-depth analysis of the present tax system before any pronouncement could be made on it. The government, he said, would have to look at the state of the nation's finances and the impact of taxes on its activities in the over all interest of the people.
He said if a reduction of taxes would move the economy forward and make the business community do better than they had done in the past, then it would be considered.
"We have to get into office first because we cannot be discussing or taking action when we are behind the door," he said.
