NDC To Demonstrate Against VAT ?

The national youth organiser of the National Democratic Congress (NDC), Harruna Iddrisu, has warned that NDC would take to the streets in protest if it realizes that the living standards of the average Ghanaian is unbearable, as a result of the increase in VAT rate.

He noted that from August 1, 2004, the already improvised Ghanaians would be required to pay 21/2 per cent increase in VAT. When that happened, he noted, it would undermine the current living standards of Ghanaian since the 21/2 per cent rate would increase the cost of living of the average consumer. Addressing a press conference at the party headquarters in Accra, Mr. Iddrisu observes that it is premature and too early to determine what would be the impact of such increase on the on the average Ghanaian.

?We wish to serve notice that at the appropriate time, we would collectively make known on the streets or in other forms, our feelings about the growing hardship that may accompany the tax increase on a range of carefully-selected goods and services?, he declared. He averred that the 21/2 per cent levy of the NHI is nothing, but VAT, pure and simple. Which is why it is not politically palatable for the NPP to accept it as an increase in VAT, from the present 121/2 per cent to 15%.

Mr. Iddrisu emphasized that government contend that the 21/2 per cent levy on goods and services is not an increase in the 121/2 per cent VAT rate. This, he indicated is not only a fallacy, but a mark of dishonesty on the part of the government.