Minority’s Spokesperson on Finance Cassiel Ato Forson has raised concerns over plans by government to introduce corporate minimum tax in the mid-year budget review on Thursday.
The former Deputy Finance Minister, who was speaking on 3FM’s Sunrise on Tuesday said taxation in itself is a good thing since every country succeeds and survives on tax revenue.
He further stated that the issue of taxation becomes a distortion if it exceeds a certain limit.
“This government is saying that they are going to introduce a corporate minimum tax and this is distortionary, and it will distort the growth of the [country].”
According to him, the New Patriotic Party (NPP) gave Ghanaians a lot of assurance before the 2016 elections and Ghanaians expect them to fulfil all of the promises, but they have misaligned the fiscal settings of this country.
“You promised to reduce corporate income tax from 25% to 20%, and businesses have planned adequately for a routine that will change like that, and this is what we call the fiscal stability.
“You come and you are introducing a corporate minimum tax for a company whether or not they make profit. A lot of companies are indeed not making profit, but they are hoping that in a few years to come they will be making some money,” Mr. Forson analogized.
He also said government and the International Monetary Fund (IMF) have agreed to increase taxes on luxury fiscals and they are going to introduce the corporate minimum fund.
The Minority Spokesperson on Finance further said government claims that the National Health Insurance Scheme(NHIS) is collapsing as a justification for an increment in taxes is not appropriate.
The former Deputy Finance Minister charged Finance Minister Ken Ofori-Atta to restore the capping for the NHIS.
“Please Mr. Finance Minister, restore the capping for the NHIS and leave Ghanaians alone for the meantime,” he said.
By Portia Gafah|3news.com|Ghana