Minority MPs kick against VAT ... it is regressive, they say

Accra (Greater Accra), 13 Jan. '99 - The Minority in Parliament today described the Value Added Tax (VAT) as regressive. They said, under the new tax system, both the poor and the rich are paying as well as sharing the same tax burden to the detriment of the former. At a press conference to outdoor the Minority Group's annual report on its activities in parliament delivered by Mr Joseph Henry Mensah, the Minority Leader, the group said the debate on VAT is not yet over and threatened to revisit it. The conference was attended by Mr Freddie Blay, Second Deputy Speaker of Parliament, Minority MP's and leading members and supporters of the minority political parties. Mr Mensah said the government's intention to collect revenue of 667 billion cedis from VAT in 1999 in place of the 300 billion cedis estimated under the sales tax in 1998 ''is hush''. He said the "government intends to take more money out of the pockets of Ghanaians through VAT than it was taking through sales tax and, indeed, more than twice as much''. Mr Blay, who chaired the press conference, said parliamentary democracy is still young in Ghana and urged Minority members to continue their fight to ensure that things are properly done.