THE UNFULFILLED PROMISES OF DR BAWUMIA AND THE NPP
GHANAIANS SHOULD BEWARE OF THE DECEIT AND TREACHORY OF DR BAWUMIA AND THE NPP
Our elders have a saying that when someone says he will give you a hat observe if he is wearing one
Ø
Hyped as Ghana's
"Economic Messiah" at the time, he promised that a government with
him as the head of the Economic Management Team will move the country from
taxation to production. Quoting Dr Bawumia, he said “During the NDC administration, taxes were even imposed on
condoms and cutlasses. This has increased the burden on the private sector and
is a disincentive to production. To address these challenges, the NPP will
shift the focus of economic policy away from taxation to production. So, we are
going to move away from taxation to production," he disclosed this at the Trade Fair Center in Accra. Read
more: https://yen.com.gh/politics/237137-bawumia-presidential-campaign-5-unfulfilled-promises-by-vice-president-haunting-chances/
After getting the mandate
the following obnoxious taxes have since been introduced by the Dr Bawumia led
Economic Management Team
TAXES
INTRODUCED BY NPP
Since the assumption of power on the 7th of January
2017, the Dr Bawumia led Economic management team has introduced at
least 25 new taxes since coming into power.
Ø 3% VAT
Flat Rate
Ø 1%
COVID-19 levy on the 2.5% National Health insurance levy, making it 3.5% now.
NB: These two taxes are indirect taxes that are paid by
consumers and therefore all Ghanaians.
Ø 5%
financial sector clean-up recovery levy.
Ø 2%
Special import levy (extended beyond expiry date of 2017)
B. First term (2017-2020) taxes that were imposed on Ghanaians,
collected and later withdrawn:
Ø Luxury
vehicle tax (GH¢1,000 to GH¢2,500 depending on engine capacity of vehicle)
Ø 50%
increase in Communication Service Tax (CST)
C. New taxes introduced in the year 2021 by the
Akufo-Addo/Bawumia government:
Ø 1%
COVID-19 levy on 3% VAT flat rate, making it 4% now.
Ø 1%
COVID-19 levy on the 2.5% National Health insurance levy, making it 3.5% now.
NB: These two taxes are indirect taxes that are paid by
consumers and therefore all Ghanaians.
D. NEW TAXES IMPOSED ON FUEL PRICES in 2021
Ø 20
pesewas Energy Sector Recovery Levy on every liter of diesel and petrol
Ø 10
pesewas Sanitation levy (“Borla”) tax on every liter of diesel and petrol
Ø 18
pesewas energy sector recovery levy on every kilogram of LPG
E. INCREASES IN EXISTING TAXES/LEVIES ON FUEL PRICES FROM
2017 TO DATE:
Ø 30%
increase in Energy Sector levies (ESLA), extended beyond its original duration
of 5 years to now 15 years.
Ø About
11% increase in Special Petroleum Tax (from 41 pesewas to 46 pesewas) on every
liter of diesel and petrol.
Ø 200%
increase in BOST MARGIN from 3% to 9%.
Ø 67%
increase in Fuel Marking Margin (from 3 pesewas to 5 pesewas) per liter of
petrol and diesel.
Ø 40%
increase in Price Stabilization and Recovery Levy on fuel products (from 10
pesewas & 12 pesewas on petrol and diesel respectively, to 14 pesewas and
16 pesewas on diesel and petrol respectively)
Ø 25%
increase in Primary Distribution margin from 8 pesewas to 10 pesewas.
Ø 36%
increase in Unified Petroleum Price Fund (UPPF) from 22 pesewas to 30 pesewas.
Ø Increase
in Road Fund Levy from 46 pesewas to 48 pesewas on every liter of diesel and
petrol.
ELECTRONIC TRANSFER LEVY TAX
Introduction of 1.5% (Now 1%) Electronic Transfer Levy Act,
effective 1st May, 2022.
Taxes introduced in 2023
·
Excise Duty Amendment Bill 2022
·
Growth and Sustainability Levy Bill, 2022,
·
Ghana Revenue Authority Bill 2022
·
Income Tax Amendment Bill 2022
2. Ghana won't borrow because "there is money in this
country"
According to the IMF, a main feature of
Ghana's severe economic and financial crisis is an unsustainable debt burden.
This famous quote is attributed to him: "I worked at the Bank of Ghana and
so I know that Ghana is rich. It is because the managers of the economy are
incompetent and so all that they think of is borrowing. The NPP if voted will
harness resources to develop Ghana. I am telling you we can develop Ghana
without borrowing, the money is here." Read more: https://yen.com.gh/politics/237137-bawumia-presidential-campaign-5-unfulfilled-promises-by-vice-president-haunting-chances/
Ghana’s debt
increased from 122 billion Cedis in 2016 to 658.6 billion Ghana cedis as at May
2024
658.6-122=536.6
billion Cedis
3. The Ghana cedi depreciation has been
arrested and the keys given to the IGP.
Another unfortunate outcome of the policies under the current administration is the steep depreciation of the Ghana cedi. Bloomberg reported in October 2022 that Ghana’s cedi slumped unprecedently to become the world’s worst-performing currency last year 2023.
Exchange rate under NDC in 2016 was 3.90
Ghana Cedis
Current exchange Rate under Dr Bawumia led
EMT 15.25 Cedis
This depreciation has led to increment in
prices of the following products
Ø
Cement from 26 cedis under JM to 98 Cedis under Bawumia
Ø
Fertilizer (NPK) from 120 cedis under JM to an all time 500 cedis
in 2023 under Bawumia
Ø
Fertilizer (Sulphate) from 90 cedis under JM to 500 cedis under Dr
Bawumia in 2023
Ø
Increase in transport fare (Damongo to Tamale from less than 15
cedis to 40 cedis under Dr Bawumia) which has a cascading effect on prices of
goods and services
Ø
Sachet water from 2.5 cedis to 6 cedis
Ø
“Kooko” with sugar from 50 pesewas under JM to 2 Cedis under Dr
Bawumia
Ø
Kenkey from 1 cedi a ball under JM to 5 cedis a ball under Dr
Bawumia
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