The Minority leader, Cassel Ato Forson, has urged the government to retract its proposed tax exemptions totaling GHS 12.5 billion.

He stated that the Minority side would not participate in further discussions with the government unless these tax exemptions were withdrawn. Despite the budget statement indicating GHS 5.5 billion in exemptions, the Minority side is convinced that an additional GHS 7 billion in tax exemptions is being concealed by the government.

Dr. Cassel Ato Forson expressed dissatisfaction with the government’s imposition of what he referred to as nuisance taxes, highlighting a departure from the promises made during the campaign in 2016.

“Mr Speaker, you recall in 2017, this same Finance Minister told this House that they were removing the so-called nuisance taxes which was indeed the hope. Today, we are witnessing new taxes. We are witnessing the epidemic of new taxes and more taxes. Mr Speaker, this government has introduced about 50 new taxes since 2017, despite the promise to shift from taxation to production.
“The NDC Minority calls on the government to withdraw these new tax exemptions before we can have any engagement with them on these new taxes… That is why we in the NDC cannot support these new taxes.”
Dr. Cassel Ato Forson

Dr. Cassel Ato Forson emphasized that despite the imposition of over 50 taxes since 2017, the 2024 budget proposed introducing additional taxes amounting to GHS 11 billion. He characterized these taxes as burdensome, regressive, insensitive, and counterproductive, particularly given that their impact would further weigh on the already strained Ghanaian populace.

“The NDC minority therefore at this time cannot support the taxes”, he emphasized.

“Mr. Speaker, we cannot support these taxes because the poverty levels in this country are too high. The additional taxes will erode the disposable income of families and worsen their standard of living. Already, Mr. Speaker, the United Nations Development Program, the UNDP, says that 25% of the population in Ghana has been pushed into extreme poverty. This means that more than 8 million Ghanaians have been pushed into poverty under this government. Mr Speaker, an additional tax will worsen the extreme poverty in our dear country.”
Dr. Cassel Ato Forson

Justification For Opposition

He clarified that the NDC could not endorse the government in exacerbating the challenges faced by businesses already on the verge of collapse due to the elevated cost of operations.

He pointed out that the situation has deteriorated to the extent that even private toilet operators have declared an increase in charges to GHS 2 per use starting from December 1, 2023, attributing it to the escalating business expenses. Furthermore, he contended that numerous individuals have lost their jobs and livelihoods, and imposing extra taxes on already struggling businesses could lead to premature closures and contribute to further unemployment.

“We in the NDC minority do not want businesses to fold up. Already, Ghana has lost its attractiveness and competitiveness to foreign investors due to the high cost of doing business. Any additional tax will further erode the competitiveness that we are already suffering.”
Dr. Cassel Ato Forson

Dr. Forson emphasized that the Minority cannot endorse new taxes, highlighting that the government’s request for tax exemptions amounts to approximately GHS 12.5 billion, exceeding the GHS 11 billion sought through new taxes. He expressed his astonishment at the government’s willingness “to give away GHS 12.5 billion to families, friends, and cronies and then turn around to burden the ordinary Ghanaian with GHS 11 billion in new taxes?”

“This is not something that, Mr Speaker, we should encourage. This is only mind-boggling”, he said.

Additionally, he raised concerns about the government’s stance, noting that the government “has folded its arms and waiting on the IMF to disburse USD 600 million, turns around to inform parliament to grant tax exemptions worth USD 449 million.”

The Minority Leader chastised the government’s mismanagement of the economy and reaffirmed the Minority’s stance on the new taxes.