John Jinapor, the Member of Parliament for Yapei-Kusawgu, has disclosed Finance Minister Ken Ofori-Atta’s plan to generate an additional GH₵11 billion through new taxes in the 2024 Budget. This revelation, arising from a meeting with the Finance Committee, indicates the intention to impose taxes equivalent to 1 percent of the GDP, sparking concerns about the potential impact on citizens.
Expressing worry about the citizens’ already substantial tax burden, Jinapor emphasized the need for the Finance Minister to explore cost-cutting measures instead of introducing new taxes. He deems it inappropriate and unacceptable to further increase the tax load on Ghanaians, highlighting the concerns raised during the Finance Committee meeting.
Scheduled for November 15, 2023, Finance Minister Ken Ofori-Atta is set to present the 2024 Annual Budget. Ahead of this, there are widespread calls for the government to focus on reducing expenditures to address economic challenges. CEO of Dalex Finance, Kenneth Thompson, has issued a preemptive warning, cautioning about a potential economic downturn in 2024 if the government doesn’t alter its current trajectory of escalating expenditures.
Amidst the discussions, other Members of Parliament have put forward suggestions. Paul Twum Barimah, the MP for Dormaa East, hinted at the possibility of the government introducing an emission tax to tackle the impact of climate change. Conversely, Albert Sandaare, the MP for Daffeama Bussie Issa, proposed considering the scrapping or renaming of the COVID-19 levy, adding diverse perspectives to the fiscal policy debate.
As the nation awaits the unveiling of the 2024 Budget, the debate over taxation and fiscal policies is expected to intensify in the coming days. With varying opinions on the proposed tax increase and alternative suggestions from MPs, the fiscal direction the government takes will likely be a central point of discussion as the budget presentation date approaches.