Parliament Passes VAT Bill In Spite Of Minority Walkout

Ghanaian consumers will have to prepare to dig deeper into their pockets to pay more for goods and services taxable under the nation�s Value Added Tax (VAT) regime. Parliament today passed a new Bill, increasing the VAT threshold from the current 12.5 percent to 15 percent. The Minority side in the House flatly rejected both the increase and the procedure used in passing the bill, saying they show the NDC government�s notoriety for practicing �stone age politics�. According to the Minority, the idea of increasing the VAT rate was not previously included in the bill seeking amendments to the VAT law. It was also not included in the memorandum that accompanied the bill to the House. However, after the Chairman of the Finance Committee, Hon James Klutsey Avedzi moved for a �second consideration� of the Bill, and after having moved some other amendments which were passed, a deputy Minister for Finance, Ato Casiel Forson, caught the attention of the First Deputy Speaker, Ebo Barton Oduro. On his feet, the young deputy Finance Minister, shrugged off widespread heckling and vitriolic attacks from angry Minority Members of Parliament (MPs), and moved that Clause 3 of the VAT [Amendment] Bill be amended to increase the tax rate from 12.5 percent to 15 percent. And, in what the Minority side considered �a clear breach� of both precedence and the constitution, the presiding Speaker, Ebo Barton Oduro, did not allow any debate on the deputy Minister�s proposed amendment although he had, in the heat of the confusion in the chamber, called for comments but was drowned by the chaos. The Cape Coast South MP quickly put the motion to a voice vote and before long the majority side voted loudly in support of the new VAT rate. The outcome of the vote provoked strong protests from Minority MPs who stormed out of the House after registering their strongest objection to the procedure used in increasing the tax rate. At a hurriedly organised press conference after storming out of the House, the Minority Leader, Osei-Kyei-Mensah Bonsu called what had happened on the floor an �illegality�. �...And so that explains why we felt that it is important to wash our hands off it and tell the good people of this country that their monies are going to go into government kitty; government is not accountable to whatever they�ve had already and it is going to end up lining the private pockets of individuals...� he added. �No Parliament works this way�, the Suame MP said, describing what had happened as a �tragedy.� A former Majority Leader, Paapa Owusu Ankomah, also slammed the procedure for raising the VAT threshold as �disgraceful�. �I walked out because I respect the institution of Parliament and because I respect the seat on which the Speaker sits...� he said. �I didn�t want to do or say anything that will amount to bringing the Speaker�s Chair into disrepute. The Speaker is a good friend of mine but what has happened is a complete disgrace; Parliament does not deserve it�. Majority Leader and Minister for Government Business in Parliament, Dr. Benjamin Kumbour, defended the government side�s action at a press conference in his office. �Just come to this Parliament and find out. VAT has been increased so many times without ceremonies,� he said.