A Ghana News Agency (GNA) survey conducted in some parts of Accra on Monday revealed that the 2.5 per cent increment in Value Added Tax (VAT) has not gone down well with some section of the public.
Mr Isaac Kyeremeh, a public servant, told the GNA in an interview that though the increment was meant to raise revenue for national development, the timing was wrong.
�In recent times, there have been some increments that workers in this country are yet to come to terms with. A rise in the Value Added Tax is therefore not the best�, he added.
Mr Kyeremeh observed that during the budget presentation, the Finance Minister said the 2.5 per cent VAT increase would be dedicated exclusively for infrastructural development and expressed the hope it would be used for the purpose intended.
Ms Linda Oppong a sales-girl said the tax increment meant for developmental projects was good but in a situation where the �dust from the increase in prices of utilities was yet to settle, another increment in tax is not fair�.
She added that she did not have a problem with the increase but if the monitoring and the collection methods remained the same, the projected figure would not be achieved for the intended purposes.
Mrs Ivy Lindsey, a businesswoman and a banker said the increment was good but the point �is whether the ordinary people in the country would be able to pay in addition to several other taxes they already had to contend with, especially when there are no corresponding increase in salaries�.
Mr John Quansah, an educationist, who spoke to GNA said the increase in VAT was not necessary because the 12.5 per cent could be properly harnessed by the Ghana Revenue Authority (GRA) in order to rake in sufficient revenue for the state.
�Increasing VAT means too much burden on the people who are struggling to come to terms with the recent upward adjustment of utility prices�, he said.
Ms Priscilla Avorlor, a student, told GNA that the new 15 per cent VAT rate was too much and called on the government to consider maintaining the old rate of 12.5 per cent.
�Sales are gradually becoming difficult because prices of items are rising, making the cost of items too expensive in the country for most students like myself�, she added.
Madam Esther Afram, a trader said the increase in VAT was not helping matters, especially when utility prices had been increased.
She observed that the situation was already putting a lot of strain on business owners who were trying to make their products affordable just so they could make decent profit, adding �To me, the additional 2.5 per cent in VAT is not acceptable�.
Others also blamed the tax officers for the increment saying some of them failed to account for monies they collected.
Madam grace Mensah a cosmetics dealer told GNA that if the GRA had decided to go after those who failed to issue VAT receipts to customers, there would be no need for the increases.
She noted that the state needed the money for infrastructural development, but if government did not hold the relevant collecting agencies responsible for the lapses, then there would be no positive development in the country.
Mr obiri Yeboah a driver shared the same sentiment saying, �If the right things are not done, Ghana can collect more money but the poor supervision would bring a zero effect.
Parliament last year approved a 2.5 Vat increment with a national health insurance levy component of 2.5% summing up to 15%. Thus the 2.5 per cent increment therefore increases the total to 17.5 per cent.
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