‘ASEMPA’ BUDGET EXCITES GHANAIANS As taxes come tumbling down

Ebo Quansah in Accra Mr. Kenneth Kuntunkununku Ofori-Atta, Minister of Finance, presented the New Patriotic Party’s first fiscal policies since assuming the reins of government on January 7, this year, to Parliament in Accra yesterday, and christened the Budget statement as ‘Asempa’, meaning a message of good hope. Even before he could end his presentation, […]

The post ‘ASEMPA’ BUDGET EXCITES GHANAIANS As taxes come tumbling down appeared first on The Chronicle - Ghana News.

Ebo Quansah in Accra

Mr. Kenneth Kuntunkununku Ofori-Atta, Minister of Finance, presented the New Patriotic Party’s first fiscal policies since assuming the reins of government on January 7, this year, to Parliament in Accra yesterday, and christened the Budget statement as ‘Asempa’, meaning a message of good hope.

Even before he could end his presentation, the message resonated at the heart of the spare parts trade in the national capital. At Abossey Okai, in Accra, spare parts dealers sang and danced to welcome the abolition of import duties on spare parts.

It was as if Ghana had won the World Cup, football’s most coveted trophy, as traders trooped out of their shops to cheer at the good news. A spokesman for the traders praised President Addo Dankwa Akufo-Addo for “keeping his social contract with us.”

At nearby Kaneshie Market, a spokesman for the market women talked of the likelihood of prices of foodstuff and other items tumbling, in reaction to the reduction and abolition of a number of taxes.

The Finance Minister also announced the reduction and outright abolition of a number of what he called ‘nuisance’ taxes. They include the one percent Special Import Levy, ‘Kayayie’ Market levy, 17.5 percent VAT/NHIL on financial services, 17.5 percent VAT/NHIL on domestic airline tickets, and 5 percent VAT/HNHIL on Real Estate sales. All these taxes were wiped out of the tax regime yesterday.

In addition, the 17.5 percent VAT/NHIL was replaced by a flat rate of 3 percent for traders. According to the Minister, Corporate Income Tax is to be progressively reduced from 25 percent to 20 percent in 2018. Excise duty on petroleum is also abolished. Special Duty on Petroleum Tax rates was reduced from 17.5 to 15 percent. National Electrification Levy is reduced from 5 percent to 3 percent. Likewise, public Lighting Levy has been reduced from 5 percent to 2 percent.

Mr. Ofori-Atta announced tax and other incentives for business enterprises that hire the services of young graduates. There would also be tax incentives for young entrepreneurs.

Using the Biblical analogy in which Jesus Christ fed the multitude on five loaves of bread and two fishes, the Finance Minister told the House that the government of Nana Addo Dankwa Akufo-Addo was ready to deliver the Ghanaian economy on scarce resources.

“Mr. Speaker, I see our nation with the overwhelming election mandate as having decided to withdraw in unison like Jesus Christ to a remote place, only to discover that we have five loaves of bread and two fishes to feed 25 million plus fellow citizens. But herein lies the genius of the Ghanaian, for we are God’s handiwork, created in Jesus Christ, to do good works prepared in advance to do so.

‘As you can see, with five loaves and two fishes, President Akufo-Addo’s budget has tackled the five structural pillars of revenue, expenditure, earmarked funds, labour and our debt,” Mr. Ofori-Atta said, cheered on by the Majority, and derided by the Minority in the House.

He promised to clamp down on “inefficiency and waste” in state spending, pledging that the Akufo-Addo administration would shift the country’s economic management from taxation to production.

“Ghana is ready, because the people are ready. In the NPP manifesto, Ghanaians have a government that is ready to work. We must trigger a national sense of urgency to fix our deficits…That we cannot borrow our way out of our challenges,” Mr. Ofori-Atta told Ghanaians.

The post ‘ASEMPA’ BUDGET EXCITES GHANAIANS As taxes come tumbling down appeared first on The Chronicle - Ghana News.

Read Full Story