Ghana Education News > Blog > News > Akufo-Addo-Bawumia Led Gov’t Introduced 50 New Taxes Since 2017 – Ato Forson

Akufo-Addo-Bawumia Led Gov’t Introduced 50 New Taxes Since 2017 – Ato Forson

Minority in Parliament opposes attempt by government to introduce ₵7 billion tax waiver Akufo-Addo-Bawumia Led Gov’t Introduced 50 New Taxes Since 2017 – Ato Forson

The Minority Caucus in Ghana’s Parliament, led by its Leader, Dr. Cassiel Ato Baah Forson, has expressed its disapproval of the government led by Nana Addo Dankwa Akufo-Addo Bawumia, stating that Led Gov’t Introduced 50 New Taxes Since 2017.

He said the taxes have brought nothing but too much burden on the already impoverished Ghanaians.

The Minority Leader alluded to this during his concluding remarks on the 2024 budget debate in Parliament on Wednesday, November 29, 2023.

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“Mr. Speaker, you recall that in 2017, this same Finance Minister told this House that they were removing so-called ‘nuisance taxes.’ That was a hoax! Today, we are witnessing an epidemic of nuisance taxes, taxes, and more taxes.

This authority has burdened Ghanaians with over 50 taxes despite their promise ‘to shift the economy from taxation to production.’ Mr. Speaker, notwithstanding the over 50 taxes imposed by this government since 2017, this 2024 budget is introducing additional taxes worth GH¢11 billion,” he said.

According to him, the Minority in Parliament cannot support the 2024 budget because of some new taxes introduced.

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“Mr. Speaker, any additional tax will worsen the extreme poverty in our dear country. We cannot support these new taxes because they will put an extra burden on businesses. Already, businesses are collapsing because of the high cost of doing business in Ghana.

We cannot support these new taxes because the current tax exemptions pending before the Finance Committee amount to GH¢5.5 billion, equivalent to USD 449 million,” he reiterated.

Led Gov’t Introduced 50 New Taxes Since 2017

TAXES IMPOSED BY THE NPP GOVERNMENT SINCE 2017

Since the assumption of power on January 7, 2017, President Nana Addo Dankwa Akufo-Addo’s and the New Patriotic Party Government have introduced some new taxes since coming into power.

A. New taxes introduced by the Akufo-Addo/Bawumia government during their first term (2017–2020) which Ghanaians are paying till date, include:

  • 3% VAT FLAT RATE
  • 1% COVID-19 levy on the 2.5% National Health Insurance levy, making it 3.5% now.

NB: These two taxes are indirect taxes that are paid by consumers and therefore all Ghanaians.

  • 5% financial sector clean-up recovery levy.
  • 2% Special import levy (extended beyond the expiration date of 2017)

B. First term (2017–2020) taxes that were imposed on Ghanaians, collected and later withdrawn:

  • Luxury vehicle tax (GH¢1,000 to GH¢2,500 depending on the engine capacity of the vehicle)
  • 50% increase in Communication Service Tax (CST)
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C. New taxes introduced in the year 2021 by the Akufo-Addo/Bawumia government:

  • 1% COVID-19 levy on the 3% VAT flat rate, making it 4% now.
  • 1% COVID-19 levy on the 2.5% National Health Insurance levy, making it 3.5% now.

NB: These two taxes are indirect taxes that are paid by consumers and therefore all Ghanaians.

  • 5% financial sector clean-up recovery levy.

D. NEW TAXES IMPOSED ON FUEL PRICES in 2021

  • 20 pesewas Energy Sector Recovery Levy on every liter of diesel and petrol
  • 10 pesewas Sanitation levy (“Borla”) tax on every liter of diesel and petrol
  • 18 pesewas energy sector recovery levy on every kilogram of LPG

 

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E. INCREASES IN EXISTING TAXES AND LEVIES ON FUEL PRICES FROM 2017 TO DATE:

  • 30% increase in Energy Sector levies (ESLA) was extended beyond its original duration of 5 years to now 15 years.
  • About 11% increase in the Special Petroleum Tax (from 41 pesewas to 46 pesewas) on every liter of diesel and petrol.
  • 200% increase in BOST MARGIN from 3% to 9%.
  • 67% increase in Fuel Marking Margin (from 3 pesewas to 5 pesewas) per liter of petrol and diesel.
  • 40% increase in Price Stabilization and Recovery Levy on fuel products (from 10 pesewas & 12 pesewas on petrol and diesel, respectively, to 14 pesewas and 16 pesewas on diesel and petrol, respectively)
  • 25% increase in the primary distribution margin from 8 pesewas to 10 pesewas.
  • 36% increase in the Unified Petroleum Price Fund (UPPF) from 22 pesewas to 30 pesewas
  • Increase in the Road Fund Levy from 46 pesewas to 48 pesewas on every liter of diesel and petrol
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ELECTRONIC TRANSFER LEVY TAX

Introduction of the 1.5% Electronic Transfer Levy Act, effective May 1, 2022.

2023

  • Excise Duty Amendment Bill 2022
  • Growth and Sustainability Levy Bill, 2022,
  • Ghana Revenue Authority Bill 2022
  • Income Tax Amendment Bill 2022

Meanwhile, Minority female Members of Ghana’s Parliament, joined by the leadership of the University of Ghana Accra City Campus Women’s Commission, students from second circle institutions, and market women, have asked the government not to tax their monthly “blood flows”.

The group is calling on the government to, as a matter of urgency, scrap taxes on sanitary pads and other sanitary products.

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