Ahead of the mid-year budget presentation to Parliament on Thursday, reports are rife that government will increase tax to raise more revenue for the development of the country.
There have been speculations that government might increase the VAT rate from the current 17.5% to 21%.
Others also speculate that government is also seeking to increase the 2.5% NHIS levy on VAT to 3.5%.
Deputy Minister of Finance, Kwaku Kwarteng, on Monday was categorical that government will not increase the existing VAT rate in the mid-year budget as being speculated.
He, however, confirmed government's intention to increase tax but not VAT.
According to him, this will help in generating resources for the economy.
“There will be tax increment but we don’t know which areas will be affected. There will be an emergency meeting tomorrow (Tuesday) to discuss it and to determine what will be taxed,” he said in an interview on Peace FM's morning show ‘Kokrokoo’.
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