Former Finance Minister, Seth Tekper, has urged businesses in the country not to rejoice over the 2018 mid-year budget review which supposedly tried not to increase VAT across board.
According to Terkper, the budget review with regards to separating NHIL and GETFund levies from the 17.5% flat VAT rate is actually a VAT increase in disguise.
“Ghana’s VAT rate is 17.5 percent and that includes NHIL (2.5%) and GETFund (2.5 %). Removing them from the VAT base and making them specific rates (instead of ad valorem) and increasing that rate to earn more revenue (quoting Hon Kwarteng) is a ruse,” he stated in a series of tweets on Thursday.
“It is a VAT increase in disguise. Businesses should not rejoice yet because they [NPP] cannot claim Input Tax Credit/refunds on 5% of the current 17.5 percent rate. Already, the Flat Rate is denying some registered businesses refunds and Input Tax Credit,” Terkper added.
Terkper went on to argue that: “the measure amounts to a parallel Sales Tax regime that the VAT replaced. It is a retrogressive step and further mutilation of the VAT regime.”
“The removal of Input Tax Credit and Refunds will increase costs and prices. It is not an efficient and business-friendly move,” the former Finance Minister added.
Source: citinewsroom.com
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Please leave politics out of this. Business will suffer as a result especially when there is no more input refund. It will be passed on to the customer and further exacerbate the already very high cost of living in this nation. It is certainly not business friendly.
Seth Tekpeh, be quiet, what the hell do you know? We all saw how you and your party managed our finances when you were in government. Are you saying you can do a better job now that you’re in opposition? This shouldn’t come from someone who failed miserably as a finance Minister, if you knew how to manage finances you should have done that when you were given the chance to serve.
But it is better than Judgement Debt Budget you presided over during your tenure. You are confusing yourself as well as your NDC people who cannot read and understand anything. I think you did not do well as a Minister for Judgement Debts.
there is no way the moron,ken ofori atta can compare himself to this intelligent Terkper...ken ofori atta is doing try and error financial management but Terkper is giving you the real situation on ground..afterall, you are the people who are going to sell the dog chains and second hand cloths at kantamanto...gyimifuor
You were made the finance minister and you mess up big time by introducing so many nuisance taxes... Shuttttt the fucccckkk uppp and enjoy your opposition....
Oh NDC, now you have NOTHING saying listen to one of their so-called financial expert?
@ DEDZI Justice? The names sounds something to me like ***barred word*** NDC
Really?
I salute you Mr SETH TEKPEH. You are too much for Ghanaian to be proud of as a former finance minister.school the Npp government well since they lack understanding of Economic principle