The Minority in Parliament is demanding the removal of the luxury vehicle tax which it deems as “economically inefficient.”
“Ghanaians expect the outright withdrawal/removal of the economically inefficient luxury vehicle tax,” the Minority said in a statement.
The Minority’s call is ahead of the presentation of government’s mid-year budget review on Monday [July 22, 2019].
The levy was introduced during the 2018 midyear budget review, took effect in August 2018 despite opposition from various groups.
Giving its expectation of the review, the Minority in a statement signed by Ranking Member on Parliament’s Finance Committee, Cassiel Ato Forson said: “Ghanaians are expecting a realistic Mid-year Budget that will address the hardships they are currently facing and not the announcement of populist, vote-buying gimmicks.”
It reiterated its position that the Akufo-Addo government has mismanaged the country’s economy and borrowed at unsustainable rates.
It said most of the monies borrowed by the government have been used for consumption and that poses serious liquidity constraint for capital expenditure.
“In the face of this obvious challenge, the Minority cautions government to exercise restraint and curb its voracious appetite for borrowing.”
“You can do all the propaganda about cosmetic deficit numbers, but the public debt will expose you,” the Minority said.
The Minority insisted that the government had caused hardship for many Ghanaians through the “back door” with regards to the 5% increment in VAT.
“It is the expectation of the people of Ghana, that such subterfuge and shenanigan will not be repeated,” the Minority statement said.
“Off-budgeted transactions is yet another serious problem that can throw the entire 2019 Budget off-gear. The Minority is certain that this has resulted from the rushed implementation of populist and unsustainable campaign promises. If this practice should continue, the whole Budgetary process from now till the end of the year will be compromised. The Minority is cautioning government not to adopt the practice of replacing critical government expenditure with ill-advised spending on frivolous campaign promises,” the minority added.
