Ato Forson schools government on how to resurrect Ghana's economy

The Ranking Member of the Finance Committee of Parliament, Dr. Cassiel Ato Forson, has bemoaned the measures outlined by the government to get the country out of the current economic challenges.

Speaking in an XYZ TV interview monitored by GhanaWeb, Dr Ato Forson said that the measures outlined by the government will rather worsen the plight of Ghanaians.

According to him, what the government should be doing is drastically reducing its expenditure like a country in crisis should and not increasing taxes imposed against its citizens who are already suffering.

“We live in a country where within 10 months inflation has moved from 13 per cent to 40 per cent plus… within this time if you are to introduce a consumption tax, it means that that you want the prices of items to increase further.

“I can’t understand that. You introduce these taxes during stability, not at times when the country is in deeper economic hardships. What you do at this time is to cut government expenditure and not to put the burden on the innocent taxpayer who is already suffering,” he said Twi.

Ato Forson, who is the Member of Parliament for Ajumako Enyan Essiam, explained that to get the country of the current challenges in the short term, the government must drastically reduce its expenditure.

He advised that the president should stall the construction of infrastructural projects like the National Cathedral of Ghana as well as reduce his frequent travels abroad and start using virtual platforms for his meetings.

“When your country is in crisis, you should lead like someone who is leading a country in crisis. Ministers of state must lead by example,” he added.

Finance Minister Ken Ofori-Atta, during the presentation of the 2022 budget, announced a proposed increment in Value Added Tax (VAT) of 2.5 percent for consumers of goods and services.

The move, according to the minister, is expected to improve the government's domestic revenue measures while seeking to reach an IMF deal to restore macroeconomic stability.

"Mr. Speaker, we will undertake the following actions, initiatives, and interventions under the seven-point agenda. To aggressively mobilize domestic revenue, we will, among others: increase the VAT rate by 2.5 percent to directly support our roads and digitalization agenda; Fast-track the implementation of the Unified Property Rate Platform programme in 2023; and review the E-Levy Act and, more specifically, reduce the headline rate from 1.5% to one percent (1%) of the transaction value as well as the removal of the daily threshold," he said.

Watch the interview below:



Watch the second part of Elvis Afriyie Ankrah's interview on GhanaWeb TV below:





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