VAT is bogus, it will only worsen plight of Ghanaians – Odike

The founder and leader of the United Front Party (UFP), Akwasi Addae Odike, has criticised the government for the upward adjustment in the Value Added Tax (VAT).

According to the businessman cum politician, the 2.5% increase in VAT would worsen the plight of Ghanaians who are already suffering in these difficult times.

In his view, government has not been sensitive to the hard times Ghanaians are going through as it worsens their woes with more taxes.

Speaking on Angel FM’s Anopa Bofo Morning Show, Odike said “you must develop a tax regime that would alleviate the pains of Ghanaians…anytime they bring a budget, they heap taxes unto Ghanaians…that VAT is bogus so by January it will only worsen the plight of Ghanaians…”

He explained that “when we talk of VAT that is what drives [everything up] it is an indirect tax and everyone pays it whether employed or not …when you buy fuel, pay the electricity bill, eat at a restaurant you pay VAT… the more you shop, the more you pay taxes to the government.”

“How can you admit that there are difficulties and still push regressive taxes unto citizens…is this government sensitive to the plight of Ghanaians?”, he questioned.

Akwasi Addae Odike’s comments comes after the Finance Minister, Ken Ofori-Atta delivered the 2023 budget on the floor of parliament titled ‘Nkabomu budget’ on November 24, 2022.

Ghanaians are expected to pay more for goods and services effective January 2023 following the upward review of the Value Added Tax (VAT) as announced by the Finance Minister.

Reading the 2023 budget to Parliament, Mr Ken Ofori Atta indicated that the government increased the VAT by 2.5 per cent which brings the tax to a total of 15 per cent.

According to him, the move is to help the government generate revenue to aid the construction of roads and other projects the government has in the pipeline.

But Ghanaians and businesses have expressed dissatisfaction in the increase in VAT citing the harsh economic conditions the nation is facing.