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in General News, Sub Top Stories1

Caught In The Crossfire Of ‘Highfalutin’ Budget To Conceal GHC11 Billion In Taxes

Maynard Championby Maynard Champion
November 16, 2023
Reading Time: 4 mins read
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Finance minister, Ken Ofori-Atta.

Finance minister, Ken Ofori-Atta.

Deception – a ploy to hide the real intent and value of a situation or thing.

For centuries, with no thoughts of exaggerations, politics and politicians have been viewed as ‘candor-deficient’.

In this case, politicians are most often reckoned as people who have everything to conceal and nothing to prove for their actions.

In their bid to get contracts, win the affirmations of citizens and get projects started, there’s always that ‘hidden agenda’ to fleece the fat of the state purse – most often than not, citizens find it hard to separate the chaff from the real good nuts.

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The implications of an ill-intended, ill-conceived ideas and projects of governments are always seen in the abysmal, reckless and negligent ways they tend to execute plans and policies born out of sheer ‘pride’.

Barring the ingrained trait of lacking a continuity plan for previous administrations projects, they self-glorify their own ideas and sell it as the holy grail of development and progress.

Revenues are the litmus test of a country’s efficiency, but it shouldn’t at all be raked in on the altar of sacrificing the real comfort of people and businesses.

Taxation is one of the ways governments are able to raise enough money to put into motion their policies and plans. However, when it is undertaken to the detriment of the people whom it is conceived to help, then the real problem rears its head.

Ghana’s budget process has always followed a cycle without any major hitches although the 2021 budget was rejected by Parliament and had to go through several processes to be approved and the appropriation bill passed.

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It’s that time of the budget year again, and the angst which followed the finance minister, Ken Ofori-Atta’s 2024 budget presentation is one for the Box Office.

Threats of exposing government’s ‘disguised tax reliefs agenda

A key expectation during pre-budget conversation and consultation had to do with the need for government not to impose any new taxes but rather expunge some existing ones deemed inimical to the growth of businesses and the private sector.

parliament
Members of parliament

Some reliefs prioritized by the government in the budget include the extension of the zero rates of VAT on locally manufactured African prints, sanitary pads and locally assembled vehicles, as well as waivers on import duties for electric vehicles and agricultural machinery.

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In spite of the eight tax reliefs implementation proposed by government, the minority in parliament deemed it a “highfalutin” move.

A ranking member on the Mines and Energy Committee of parliament, John Jinapor, revealed that the reliefs would not bring about any significant changes.

“They are talking of so-called electric vehicles for public sector transport. People are suffering today, inflation is at 38%, the currency is depreciated by more than 20%, you are increasing people’s wages by just 23%. So, already you are worse off and instead of coming up with policies that will address the situation now, you come up with this so-called highfalutin reliefs and claim that these are reliefs, to who?”

John Jinapor

On the other hand, Member of Parliament for Cape Coast South, George Ricketts-Hagan, indicated that the Minority caucus in Parliament will unravel an alleged GHC11 billion taxes hidden in the government’s 2024 budget.

“We know that there’s GH¢11 billion in taxes [in the budget], but it is hidden, so we will unravel it… In a couple of days, we will unwrap it and show where they have been hidden…They have been disguised, and that was the whole idea… So, we have to open it up.”

George Ricketts-Hagan

In the ensuing day, the real drama will unfold with both parties on the political divide presenting their analyzed optics on the true motive of the budget. Ghana at this point needs no soothsayer on the outcome.

Eventually, the government of the day will ‘win’ the argument, the ‘rants’ of the minority will die down and Ghanaians will invariably have to swallow the pain of paying the ‘clandestine’ taxes posed as relief packages.

When everything is said and done, exposing the true desire of a government, no matter how sinister and nefarious it may be, means nothing much when nothing is tangibly done about it.

Ghanaians want the change to reflect in the ‘change’ they receive after making purchases, not the power point presentations posed as the ‘savior’ of the day.

READ ALSO: Government Disburses GHC13.8m Under National Rental Assistance Scheme

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