Prof Mills said NDC MPs were being advised to vote against the Tema Oil Refinery (TOR) Debt Recovery Bill that was currently before Parliament if it was to result in any higher prices for petroleum products than tho! se already announced.
He said "instead of bringing petroleum prices down the 2003 Budget has introduced a new TOR Debt Recovery levy that was likely to have the effect of adding 640 cedis to every litre or 2,900 cedis to every gallon to the prices of all petroleum products and if the bill was passed a gallon of petrol would sell at 23,000 cedis while diesel and kerosene would sell at 20,500 cedis each.
He said the increases would not only be too much for Ghanaians to bear but it was also unjustifiable for the government to seek to impose a TOR debt recovery levy when taxes on petroleum prices alone were to yield almost 1.78 trillion cedis of total government revenue accounting for 8.3 percent of total revenue to be received in 2003.
There was 170 cedis per litre of the prices of petroleum products built into the existing prices and were collected and allegedly paid into an escrow account since January 1 7, 2003.
He said the Constitution prohibited imposition of taxes without an act of parliament adding "whether described as tax, levy, margin or whatever we find this amount, which is not authorized by Parliament, we repeat our call on government to refund this illegal levy to consumers through the simple expedient of selling petroleum products at prices less by 170 cedis per litre for the quantity of fuel that had been pumped out since January 17.
Prof Mills said there was a five percent VAT increases built into the budget out of which 2.5 percent was to be used as contributions to the National Health Insurance scheme.
He said although it was agreeable that government should contribute to the scheme, yet "we are opposed to any backdoor increase in the rate of the VAT.
"The NPP as you are all aware opposed the introduction of the VAT at 17.5 percent and forced its withdrawal. The NPP opposed ! its re-introduction at 10 percent and its subsequent increases at 12.5 percent. For the same NPP to decide not only to retain the tax once it finds itself in power but to increase it to the original 17.5 percent, "is to say the least, hypocritical, deceitful and an unconscionable."
Prof. Mills said knowing the moral indefensibility of its position, the NPP government did not have the courage to call VAT by its name in the budget but described it as a contribution on expenditures and transactions. Additionally, 2.5 percent of workers contribution is also to be applied to the health Insurance scheme. Thus under the pretext of the National Health Insurance Scheme, the NPP government is reducing workers pension and at the same time decreasing the purchasing power of Ghanaians through an increase in VAT.
The NDC Flag bearer said when the NPP said that they were going to abolish the 'cash and carry system' they did not say it was going to be at the expense of the workers and an increase in VAT.
