Presidential candidate of the Opposition National Democratic Congress (NDC), John Dramani Mahama, has called the bluff of the Vice President, Dr. Mahamudu Bawumia, over his promises to scrap some taxes should he be elected President in the December elections.
He says the taxes imposed by government are part of the agreement with the International Monetary Fund (IMF) for Ghana’s US$3billion facility, the reason his promises to scrap them are all lies.
John Mahama, speaking during an engagement with members of GUTA and the NDC Monday, April 09, 2024, indicated that if the Vice President makes any promise of scraping any tax after becoming President, Ghanaians should tell him to go the IMF and make that claim since those taxes are emanating from government’s agreement with the Bretton Wood Institution.
“If somebody comes promising you that ‘I’m going to remove these taxes, I’m going to do this, I’m going to do that’, the first thing you should ask him is; they have signed an IMF agreement and the IMF agreement says that by 2028, they should increase the percentage of revenue to GDP to 24%. We came from a little below 15%. With all the taxes that this government has piled on, it has brought us to 17.7% and it is based on an agreement they have signed with the IMF. So, if somebody tells you when I come I’m going to abolish this tax and the person is in government now, ask him to go to the IMF and tell them that they are going to abolish that.”
According to John Mahama, Ghana’s review with the IMF is now threatened due to the VAT on electricity the people rejected. He said that levy was part of the IMF programme and he is certain the government is devising a new tax to levy Ghanaians in place of the electricity VAT.
“Right now our review is in danger because they also wanted to put VAT on electricity and you know we opposed it so this review is going to see where they can find that money because that money would have brought US1.8billion. By now they would be formulating another tax that they can put on you,” he said.
“So, we must be careful with the promises some people are making. If they can do it let them start implementing it now let’s see. And don’t say we should vote for you before you come and implement those tax reliefs,” he added.
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