Parliament passes VAT Amendment Bill increasing VAT rate by 2.5 percent

Parliament has by a majority decision passed the Value Added Tax Amendment bill to increase the rate by 2.5 percent. The controversial bill had to go to a head count for it to pass by a 135-136 majority decision.

Members of the Minority argued against the upward review of the VAT rate stating such a move could compound the hardship Ghanaians are already going through.

Ranking member for the finance committee Dr. Cassiel Ato Forson and his deputy Isaac Adongo argued the timing was wrong.

The majority MPs however argued the government needs the revenue to resuscitate the economy urging the NDC MPs to support the passage of the bill.

In the end, minority chief whip Muntaka Mubarak had to call for a head count after the voice vote.

The resistance of the NDC MPs was however curtailed after the process since they could only get 135 of their members against 136 of the majority.

The decision by the minority leadership to however not call for a division that would’ve required secret voting angered the backbenchers.