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Former Power Minister and Member of Parliament for Pro East, Dr. Kwabena Donkor has criticised the proposed abolishment of taxes charged on head porters (Kayayei) and reduction on street light levy, suggesting that the pronouncement was misplaced, cosmetics and populist.
According to Dr. Donkor the maiden budget statement of the Akufo-Addo-Bawumia government delivered Thursday by Finance Minister, Ken Ofori-Atta is misleading and bereft of specificity.
During the maiden presentation of the current administration’s national budget on Thursday, the Finance Minister, Ken Ofori-Atta, lined up a considerable number of taxes to be abolished as a way of encouraging the growth of the private sector.
Mr Ofori-Atta said taxes charged on the head porters was among the counterproductive taxes that needs to be scrapped.
However, commenting on the budget statement on Radio1 Breakfast Show ‘Susubiribi’, Dr. Kwabena Donkor said there is nothing like ‘Kayayi’ tax, the current Minister goofed when he attempted to make it look like the local government-level tax on the head porters was a national one.
“‘Kayaye’ tax does not exist in this country and also there is nothing like street light levy…so if this does not exist then what are they reducing, this is cosmetics and very populist budget”, he told the host, Captain Kofi Owusu.
The ‘tax attacks’
The government also intends to reduce the special petroleum tax rate on petrol from 17.5% to 15%.
Other taxes that will be completely abolished include the following:
- The 1% special import levy
- The 17.5% VAT on financial services
- The 17.5% VAT on selected imported medicines not produced locally
- The 17.5% VAT on domestic airline tickets
- The 5% VAT on real estate sales
- Duty on importation of spare parts
Also, the 17.5% VAT imposed on traders has been replaced with a 3% flat rate, while businesses that employ young graduates from tertiary institutions will get tax credits and other incentives.
Furthermore, there will be tax incentives for young entrepreneurs while the Corporate Income Tax will be progressively reduced from 25% to 20% in 2018.
Additionally, Mr Ofori-Atta said the Akufo-Addo government will initiate steps to remove import duties on raw materials and machinery for production.
Source:radiooneghana.com/Agyapong Michael
