Former Finance Minister Dr. Mohammed Amin Adam has accused the Ghanaian government of introducing new taxes while simultaneously claiming credit for abolishing “nuisance taxes.” The Karaga MP made these remarks during a parliamentary debate on Ghana’s exit from its International Monetary Fund (IMF) program, challenging the Finance Minister’s assertion that the government has lightened the tax burden on citizens.
Challenging Tax Relief Claims
Dr. Amin Adam highlighted several levies and taxes that he contends were either newly introduced or had their sunset clauses extended under the current administration. He expressed surprise that members of the Majority side in Parliament seemed unaware of these additional fiscal measures.
“I am very surprised that the Majority side of this House doesn’t know new taxes were introduced,” he stated during the debate.
Specific Taxes Under Scrutiny
Among the specific measures cited was the Energy Sector Levy, commonly referred to as the “Dumsor Levy.” Dr. Amin Adam pointed to this as a prime example of a new tax introduced by the government.
“I like to mention just some of them, the popular Dumsor Levy (D-Levy),” he said.
Furthermore, the former Finance Minister criticized the government’s decision to extend the lifespan of taxes that were originally scheduled to expire. He specifically mentioned the Growth and Sustainability Levy and the Special Import Levy.
“The Growth and Sustainability Levy was supposed to have ended but you renewed it by extending the sunset clause. The Special Import Levy was supposed to have ended last year but you again extended the sunset clause,” he argued.
New VAT on Insurance Alleged
Dr. Amin Adam also alleged the imposition of a new 15% Value Added Tax (VAT) on life insurance services. He presented this as further evidence that the government has increased the tax load on Ghanaians, contrary to its public statements.
“So if you don’t know that you have brought another 15% VAT under life insurance, so I’m telling that you have introduced new taxes,” he asserted.
Transparency and Revenue Measures
The Karaga MP suggested that the Finance Minister’s focus on abolished taxes overlooked the introduction of these new or extended measures. He also drew attention to revenue generated through fees and charges that Parliament had approved.
“The government collected 20 million taxes from Ghanaians under fees and charges. Have you forgotten that you brought them to be approved for you?” he questioned.
Dr. Amin Adam called for greater transparency from the government regarding the full scope of tax measures implemented since it took office. He believes citizens deserve a clear understanding of all fiscal policies affecting them.
Implications and Future Outlook
These accusations come at a critical juncture as Ghana seeks to solidify its economic recovery following its exit from the IMF program. The debate highlights ongoing tensions regarding fiscal policy and public perception of tax burdens. Observers will be watching to see if the government provides a detailed response to these specific tax allegations and how these discussions influence future tax policy decisions and public trust in the government’s fiscal management.
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