Outspoken Ghanaian actress Lydia Forson has reacted to the new taxes imposed in the 2022 Budget presented by Finance Minister, Ken Ofori-Atta.
According to the actress, the government is wrong in creating the impression that taxation is hindering state development.
In a tweet, Miss Forson criticized the government saying, “This government constantly wants people to believe that the biggest hindrance to our development is TAXATION when it isn’t!!
“It’s why these trolls always use “do you pay your tax” to counter your demands from the government. Tax isn’t the issue, our lack of faith in you is,” she added
Reading the 2022 budget on Wednesday, November 17, the Finance Minister, Ken Ofori Atta said to compensate for the abolishment of road tolls, the government is looking to introduce innovative ways of raising revenue such as the proposed 1.75% phone transactions levy payable by mobile money users per transaction above GHC100.
He said this will help the government to shore up revenue inflows to fund road projects in the country.
“Total value of transactions for 2020 was estimated to be over GHS 500 billion Cedis compared to GH¢78 billion Cedis in 2016 just 5 years ago, while total mobile money subscribers and active mobile money users have grown by an average rate of 18% and 16% respectively between 2016 and 2019. Mr. Speaker, it is becoming clear there exists the enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the “shadow economy”.
“After considerable deliberations, the Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy.”
Fees and charges of government services have also been increased by 15%.
The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.