Revenue measures in the budget not consistent with the Minority view – Adongo

Isaac Adongo (MP for Bolgatanga Central) has said the NDC Minority in Parliament voted massively against the 2021 budget because they, the Minority, did not believe that given the current problems of the country including the novel Coronavirus pandemic, an additional tax burden should be imposed on Ghanaians.

Speaking on Citi TV’s Point of View, Adongo said: “The revenue measures as stated as policy in the budget was not consistent. Particularly, [...] across the globe, all the countries, we are yet to see a country that has introduced austerity measures instead of stimulus. We were seeing a completely different programme that we think cannot bring the economy out of the doldrums and so we could not support [the] additional burden on the people.”

Adongo indicated that he could not understand why the salaries of workers have not been adjusted by the Akufo-Addo-led government, yet the same workers are being asked to pay more.

He added that the workers are unable to recover the losses that they have sustained in 2020 as a result of inflation.

“We’ve not been able to restore their 2020 parities and we are asking them to contribute more in terms of regressive taxes, we were not about to accept that,” Isaac Adongo stressed.

The 2021 budget statement and economic policy of the Akufo-Addo administration proposed new taxes on petroleum products, a one per cent COVID-19 Health Levy based on the VAT Flat Rate Scheme, and [? an additional] one per cent National Health Insurance Levy (NHIL).

Also, a financial sector clean-up levy of five per cent on the profit-before-tax (gross profits) of banks has been targeted.

Osei Kyei-Mensah-Bonsu, Minister for Parliamentary Affairs, who presented the 2021 Budget to Parliament last Friday in Accra on behalf of President Akufo-Addo, said that these levies would be reviewed in 2024.

“The financial sector clean-up and the refund of monies to depositors have restored investor confidence and protected the hard-earned savings of millions of Ghanaians. However, this has come at a huge cost of over GH¢ 21.0 billion to the government,” he explained.