Business News of Friday, 7 July 2017
The ranking Member of the Finance Committee of Parliament, Hon. Isaac Adongo has described officials of the ruling New Patriotic Party as confidently incompetent.
According to him, government’s decision to introduce the new 3% flat VAT rate is a show of incompetence and ignorance.
He made the remarks in reaction to the controversial 3% flat VAT rate which has been introduced by the Ghana Revenue Authority.
The Ghana Revenue Authority (GRA) introduced the policy to replace the old VAT law which mandated manufacturers and service providers to charge 17.5% VAT on behalf of the state.
Mr. Adongo addressing journalists Thursday said “if you want to increase taxes just say so.
You cannot say in one breadth that we have to squeeze to pay more for you to get more revenue and in another breadth tell us you are reducing taxes what kind paradox of confusion is this.
This is a very clever incompetent government but I don’t blame them because they have been listening to Bawumia’s lectures.”
“What we are seeing is a government that has lost focus, a government that has demonstrated unparalleled incompetence but what hurts is that they do it with so much confidence that it is very amazing.
“I am telling you that in order to ensure that they cloud their incompetence they refer to us as ignorant but today they display ignorance with utmost confidence.”
Hon. Adongo, who is also the Member of Parliament for Bolgatanga, however, said that the Minority in Parliament will not hesitate to summon the Akufo-Addo led administration in court should they fail to take a second look at the confusion surrounding the new VAT flat rate.
“We do believe that as a government will walk the path of dialogue in order to resolve this matter but when that fails we will proceed to court.”
Meanwhile, the Ghana United Traders Association (GUTA) has petitioned the Finance Committee of Parliament, to maintain the 3% VAT scheme, which came into effect on July 1.
GUTA in a petition signed by its President George Ofori stated that they fully “support the VAT FLAT RATE SCHEME 100%,” adding that it is a very good policy that will ensure fairness in the business environment”.