Member of Parliament for Sekondi, Andrew Egyapa Mercer has said the new taxes introduced in the 20201 budget are targeted at solving specific problems.

He said the problems facing the country at the moment do not permit the government to borrow rather introduced taxes to deal with the specific challenges.

His comments come after Lawmaker for Tamale North, Alhasan Suhuyini has said the 2021 budget statement presented by the leader of government business Osei Kyei Mensah Bonsu will worsen the condition of businesses in the country.

He said at a time Ghanaians and businesses are dealing with the negative impact of the coronavirus, the government has introduced taxes to, in his view, worsen their plight.

“The government introduced burdensome taxes on some companies already overburdened by COVID,” he said on the Key Points on TV3 Saturday March 13.

He added “There is the tax on sanitation that we are going to deal with. There is also the Covid levy for us to pay.


“How much more can one be insensitive? As a people we have already paid for Covid by the loved ones lost and by businesses that have been lost.”

Bu Mr Mercer said on the same show that “The taxes introduced are essentially directed to solve specific problems,” he said.

The government is proposing in the 2021 budget statement the introduction of a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to Covid-19.

“To provide the requisite resources to address these challenges and fund these activities, the government is proposing the introduction of a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to Covid-19,” the budget said.