PRESS STATEMENT BY CDG

*Coalition  For Democratic Governance (CDG)*

*For immediate release*

*Press Release*
14/07/2018

*ANY INCREASE IN VAT WILL  BE SUICIDAL IN THE CURRENT ECONOMIC HARDSHIPS*

Coalition For Democratic Governance has learnt with great shock the intention of government to increase Taxes in the coming days. Government in its budget review, plans to hike the rate of tax by as much as from 17.5% to 21.5%.

In as much as no formal announcement has been made to this effect, we know there is a mid year budget review coming up and leading members of both party and government have in recent times been making statements ostensibly to prepare the minds of Ghanaians to accept these obnoxious, wicked and burdensome tax policies to be imposed on an already suffering population and a suffocating business environment.

It must be noted that, Value Added Tax (VAT)
is a consumption tax that appears to punish the consumer for his consumption behavior in government's quest to raise tax revenue. This is a very weak and poorly conceived policy choice that leads to an escalation of the prices of goods and services in the economy.

In an economy where the prices of goods and services are already on the ascendancy, workers incomes remained the same, their purchasing power effectively depreciated, the worse government can do to them is to leave them in their current situation instead of seeking to punish them further.

Gabby  Asare -Otchere Darko, a leading  member of the ruling  government in a Facebook post appealed to Ghanaians *''will you support a VAT increase to keep your light on, your secondary school filled, your school kids fed, your street clean, your street safe, young graduate employed and a descent affordable homes built for working families''*

There can be nothing more offensive and insulting to Ghanaians than what Gabby wrote.

1. Let Mr. Gabby Asare Otchere Darko be told that, Ghanaians are not enjoying electricity for free, warranting the payment of taxes to maintain its provision. Fact is that, we have all been paying our electricity bills at commercial rates. What is therefore the justification to call on us to pay additional taxes for electricity if it is not grand scheme designed to enrich the private concessionaire to which ECG was recently sold.

2. To the extent that VAT is a consumption tax, it means that, even none workers are liable. Gabby Asare Darko wants none workers to contribute/pay VAT to build affordable houses for the working population? How more insensitive could he be.

3. This Government came in on the campaign of Ghanaians being overtaxed and that, they're going to *"move from taxation to production"*. They then went ahead to classify some taxes as nuisance and abolished same accordingly. Government must show policy coherence and consistency. If their their propaganda tax policy policy statement contained in the Asempa Budget has failed, they should publicly eat the humble pie. Even then, we will advice them to reinstate those so-called nuisance taxes which Ghanaians were already used to before NPP came to office. They should reinstate the Abosey Okai taxes.

4. Government must immediately end the spectre of tax exemptions. You can't exempt very rich companies, including multinationals in the mining sector and turn round to tax poor people.

5. When government genuinely needs to tax its citizens for developmental purposes and wishes to have the populace behind it, the way to go is not the kind of offensive Facebook post by Gabby Asare Darko. It must be seen to be showing goodwill in its own policies.

How can you recruit and maintain an unreasonably large army of family and friends at the presidency with an unprecedented 110 ministers paying all of them enhanced remunerations and turn round to tell the citizens there is no money? CDG wishes to call on Government to drastically reduce the size of the government to save the countries scarce resources. CDG does not see the need and usefulness of all the appointees.

6. The current leadership argued in opposition that, they'll cut down on the waste and corruption in the system to free up resources for development. Corruption and waste now appear to be on the ascendancy. You don't justify taxation under this circumstances.

CDG is shocked to see that, a party that campaigned, saying that it was lazy man's governance style to tax its way to governance, that they know where the money is, and will not tax Ghanaians, all of a sudden can't find the money and are resorting in this desperate manner to taxation. We shudder to think that Ghanaians were deceived and hoodwinked into voting for the Nana Addo and Bawumia government.

If the Nana Addo-Bawumia led NPP government refuse to heed, Ghanaians are ready to vehemently resist their autocratic leadership.

In conclusion, CDG shall lead Ghanaians to hit the streets should such suicidal killer taxes be introduced.

Signed

Diplomatic Mobarak
National Coordinator
0248690371

Rebecca Ehun
Deputy coordinator
0243736858