A forensic Chartered Accountant, Awuni Akyireba has criticized the government of the day for its decision to increase and introduce new taxes at the 2021 budget reading on Friday, March 12, 2021.
He noted that Ghanaians and businesses are still suffering from the effects of COVID-19 and described it as unreasonable for these taxes to be introduced.
According to him, the government should rather focus on supporting more businesses with COVID- 19 stimulus packages. “This support should be given to businesses who didn’t benefit from the initial stimulus package”.
Speaking in an interview on the Epa Hoa Daben political show, with Happy98.9FM’s Don Kwabena Prah, Awuni Akyireba said, “If we want to stimulate a rapturous boost of the economy, then the government needs to give the citizens more stimulus packages and not taxes now”.
He believes if government focuses on providing businesses with stimulus packages, they will definitely be trade booms and increased production. “If this happens and businesses take off, the government can then increase taxes but not now”, he stated.
Awuni Akyireba however believes there is no justification whatsoever on the part of government for the introduction and increment of these taxes. “At this point, we have unstable power supply and irregular supply of water. These two coupled with COVID-19 is affecting businesses but the government wants to increase taxes”.
The Caretaker Finance Minister, Osei Kyei-Mensa-Bonsu during the 2021 Budget Statement Friday said that Government is proposing the introduction of certain levies to help the economy recover.
For example, speaking on the Covid-19 Health Levy of 1% on VAT and other health-related levies, the Minister noted that these levies will be used for the procurement of vaccines and the establishment of 14 medical waste treatment facilities.
He also announced that Government is proposing a Sanitation and Pollution Levy (SPL) of 10 pesewas on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA) as well as Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA.
The Minister revealed 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”.
By: Joel Sanco
