The Minority could not muster the necessary support to win the voting called despite fierce resistance to the 2.5 percent increase in the Value Added Tax (VAT) as stated in the 2023 budget statement.
The issue was put to a vote following a contentious discussion on the floor of Parliament on Thursday morning, and the Majority prevailed.
With 136 votes to the Minority’s 135, the Majority prevailed.
Many were surprised by the inclusion of the 2.5 percent increase in VAT in the 2023 budget, especially in light of the current president’s opposition to the tax’s establishment in 1995 when he was a member of the opposition.
Nana Akufo-Addo was one of the leaders of the popular deadly ‘Kumi Pr3ko’ demonstration against the Rawlings-led administration.
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In arguing against the policy on the floor of Parliament on Wednesday night, Ranking Member on the Finance Committee Dr Cassiel Ato Forson cautioned against the introduction of the 2.5 percent increment at this time of economic turmoil.
“I do not believe that this is the time to introduce a VAT, a tax that seems to take away additional disposable income,” he stated.
“I urge the Ministry of Finance to wait for this measure and introduce this single tax handle at the right time, during times of stability, particularly at a time when disposable income has not been eroded by 300 percent,” the Ajumako-Enyan-Essiam Member of Parliament (MP) urged.
Nhyiaeso MP Dr Stephen Amoah, however, challenged the Ranking Member and said even “giant” economies like that of the US are facing inflationary challenges and increasing taxes.
He said the National Democratic Congress (NDC) only wants to reject the VAT to “destroy the country because they want Ghanaians to vote for them”.
“I am urging my brothers [in the Minority] to bury their ego, to stop displaying their egotrips and support this good alternative and ensure that this country could rise up to continue the good works that we are doing.”
The Amendment Bill was approved.
