Head of Psychology at the University of Ghana, Prof. Joseph Osafo has supported government's new taxes on Ghanaians.
The Minister of Parliamentary Affairs, Osei Kyei-Mensah-Bonsu on Friday, March 12, presented the 2021 Budget Statement to Parliament.
The caretaker of Finance Minister, delivered the budget themed; "Consolidation, Completion and Continuation" on behalf of the indisposed sector head, Ken Ofori-Atta.
The 2021 budget statement and economic policy of government among others focused on measures the government is going to implement to mitigate the effect of COVID-19 global pandemic on the Ghanaian economy.
In all the Caretaker Finance Minister announced the suspension of four taxes. They are;
*The suspension of quarterly vehicle income tax during the third and fourth quarters of the year for operators of commercial public transport popularly called trotros and taxis. According to government, this move is aimed at reducing the cost of transportation under its tax relief program.
*Tax rebate of 30 per cent on the income tax due for companies in hotels and restaurants, education, arts and entertainment, and travel and tours for the second, third and fourth quarters of 2021.
*For operators of small businesses using the income tax stamp system, government is suspending their quarterly income tax instalment payments for the second, third and fourth quarters of 2021.
*There is also an extension of waivers of interest on accumulated tax arrears as an inventive to pay them off early although to be eligible, the first quarter tax obligations must have been fulfilled.
However, government also introduced some six (6) new taxes.
The Akufo-Addo Administration will be introducing a Covid-19 Health Levy on VAT, Flat Rate Scheme (VFRS) and 1% on National Health Insurance Levy (NHIL) as part of the revenue to help recover the economy
Also, it announced a 5% on profit-before-tax of banks as the financial sector clean-up levy.
This is to help defray the outstanding commitments in the sector.
Aside from that, the Government has instituted a Sanitation and Pollution Levy (SPL) of 10pesewas to keep the environment clean, as well as a "review of road tolls".
There is also a new tax on betting/gaming. On Gaming Policy, government said gaming had become a major income earner all across the globe and a significant source of government revenue.
Fuel prices would also go up by 5.7%, Caretaker Finance Minister Mr. Osei Kyei Mensah-Bonsu announced.
“I should note that on the basis of existing world crude oil prices, the implementation of the two proposed levies for sanitation and pollution as well as to pay for excess capacity charges, would result in a 5.7% increase in petroleum prices at the pump.”
Speaking on Peace FM's ''Kokrokoo'', Prof. Joseph Osafo reminded Ghanaians of the need to pay the taxes saying the government expended so much in providing incentives to them to ease their hardships during the global Coronavirus pandemic.
He, however, admonished the government to use taxes judiciously to revamp the economy by enhancing the nation's infrastructure development and undertaking projects that will innure to the benefits of Ghanaians.
"The government has spent a lot of money already, so if the government is looking for means to gain a sustainable raising of funds that will be helpful in fighting against this disease, I don't think it's something that we should kick against. But will government be committed to that? That's what, for me, most important," he said.
<<Print>>