Member of Parliament for the Madina Constituency, Lawyer Francis Xavier Sosu has indicated Government’s inability to determine the right time for tax increment in an interview with Kingdom fm.
According to him, it is sad for Government to impose these taxes (Covid-19 health levy, road toll increases, gaming tax, sanitation and pollution levy (borla tax), 1% increase in NHIL, 1% increase in VAT flat rate, increased Energy Sector Levy (ESLA) and financial sector clean up levy.) during this pandemic.
He hurther Indicated that, President Akufo-Addo has deceived the nation because he promised Ghanaians to shift the focus of the country’s economy from taxation to production.
He believes this decision will subject Ghanaians to more hardship than before.
‘’it is basic economics that taxes contract the economy through reduction in consumption and spending, increases the cost of business, and leads to high cost of products because the burden of tax is transferred to the final consumer and ultimately leads to high inflation. I believe it is definitely not the right time for the government to take those decisions in the management of the economy’’.