Today, the Minister of Finance will present a mid-year review of the 2019 budgetary projections to Parliament which Ghanaians will be keenly following.
Businesses have warned against the introduction of new taxes in the midyear budget review because they believe it will be counterproductive and could destabilise the business community. Business want the Minister to review a number of policies they claim are having negative repercussions on local businesses, particularly those in the manufacturing sector.
Key among them include the 5% VAT rate introduced during the last midyear review, the reduction in benchmark values of certain products that can be produced domestically, as well as, clarity on how the environmental tax is being used to tackle the plastic menace in the country.
Chief Executive Officer, Seth Twum-Akwaboah said the 5% flat VAT, for instance, should be reduced to a rate of 1% so that consumers will not have to bear any extra cost.
While, the TUC says wages need special attention in this review because whilst the economy is growing, real wages are declining.
No economy can grow on a sustainable basis if real purchasing power keeps declining, the TUC argues, so they are looking to hear the Minister talk about the wage condition of workers. TUC also stated that the people of Ghana are expecting that the improvements in macroeconomic management, as shown by the macroeconomic economic indicators, should reflect visibly in their pockets and in their lives.
We are aware that the ministry is concerned about meet revenue targets since we seem to fall short of projections made in the 2019 budget statement. It will be interesting to hear what strategies government will adopt for the remaining half of the year with respects to raising revenue.