Perhaps dazed by the brilliant policies outlined by the Minister of Finance, Kenneth Ofori Atta, in the budget read yesterday, the opposition National Democratic Congress has been singing discordant tunes in their assessment of the components of the budget.
Whilst Former NDC MP for Ablekuma Central lauded government on its plans to remove import duties on automobile spare parts to help reduce prices of vehicle spare parts in the country, the former Finance Minister, Seth Terkper, is warning of dire repercussions on the economy following the reduction of taxes by the Akufo-Add led government.
According to Theophilus Tetteh Chaie, the tax cuts would bring relief to dealers of spare parts especially in his constituency whose businesses were near collapse.
The former NDC MP on Asempa FM’s ‘Ekosii’ Sen programme yesterday afternoon commended government for the human-friendly policies.
He indicated that the abolishment of the taxes meant buyers of automobile parts would enjoy relief on vehicle spare parts and also commended government for abolishing taxes on aviation fuel.
He was convinced the focus on tax reduction which is a primary concern for government will facilitate business expansions and job creation. This, he said, will lead to corporate and income tax benefits.
Theophilus Tetteh Chaie, however, cautioned the traders who are the major beneficiaries of the tax cuts to also reduce the prices of their goods to benefit consumers.
Meanwhile, Seth Terkper says the reduction will only encourage smuggling and deprive government of needed taxes for development.
The former Minister in an interview with Joy News said the tax cuts is a recipe for disaster explaining that tax free spare parts importation is only going to deprive Ghana of revenues.
Seth Terper therefore urged government to weigh the pros and cons before implementing the reduction.
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