Engaging in deceptive financial policies –Afenyo-Markin

The Minority Leader, Alexander Afenyo-Markin, has strongly criticised the government’s latest tax amendments, accusing it of engaging in deceptive financial policies that offer minimal relief, while imposing greater burdens on Ghanaians.

“So this attitude of attempting to give one, take more, this ‘Ndaadaa’ attitude, we can read in between the lines,” he said.

Contributing to the budget debate, he dismissed the government’s claims of fulfilling campaign promises, arguing that its actions were neither new nor beneficial to the ordinary citizen.

He reminded the House that when the Akufo-Addo administration presented its first budget in 2017, it repealed 15 different taxes introduced under the previous Mahama administration. However, he pointed out that this pattern of tax reduction was misleading.

“We are aware that in their time, even Kayayei (head porters) were taxed. Agro-inputs, including cutlasses used by farmers, were taxed. Import duties on spare parts were extremely burdensome,” he stated.

“If today they claim they are abolishing some taxes, we support it, but we know they are not doing this in the interest of Ghanaians.”

Gold Board Law

The Minority Leader warned that the government’s introduction of the Gold Board law would effectively render the tax repeal insignificant.

“This very law being repealed will soon be useless with the coming into force of the Gold Board law. So, practically, the government is doing nothing,” he argued.

He called for meaningful tax exemptions for industry players, especially those in the mining sector, stating that the government’s tax policies must prioritise economic growth rather than short-term political gains.

Special Import Levy

He also raised concerns about reports that the government planned to extend the Special Import Levy from 2025 to 2028, despite earlier assurances that it would be scrapped.

“I want the Finance Minister to rise on a point of order and deny, for the record, that they are extending the Special Import Levy from 2025 to 2028. This is very important for importers and they deserve clarity,” he demanded.

He accused the government of failing to provide real relief to businesses and the private sector, arguing that the administration was not committed to supporting economic growth.

“This government is not really a government that cares about the ordinary Ghanaian. Importers who expected an end to this levy will be disappointed.”

Private Sector 1D1F Exemptions

The Minority Leader further criticised the government for allegedly cancelling the tax exemptions under the One District, One Factory (1D1F) initiative, which he said had helped businesses grow.

“The private sector can only thrive if the government truly gives them a breather. But what do we see? We hear they are even cancelling the 1D1F policy, which allowed for tax exemptions that facilitated real growth,” he lamented.

He emphasised that businesses need tax exemptions to lower production costs, create jobs and ensure that goods remain affordable for consumers.

“Then they come back and say they are removing a 1.5% tax and we should applaud them? Go to the private sector. Interact with members of the Association of Ghanaian Industries. Interact with members of the Chamber of Commerce. Interact with the ordinary Ghanaian businessman. What kind of consultations did they do?”

In concluding his argument, the Minority Leader called on the government to genuinely engage with business owners, importers and key stakeholders in crafting tax policies that benefit the private sector.

“You have not interacted with the continental businessmen. You have not engaged the importers, yet you stand here claiming the government is delivering on its promises,” he asserted.

“Without more, I shall rest my case and look forward to proper tax legislation that would benefit the private sector. I am for the private sector and I don’t think this government is for the private sector,” he concluded.

Scrapping of E-levy

Parliament has meanwhile approved the scrapping of the Electronic Transaction Levy (E-Levy) in the 2025 budget statement. The bill will now be sent to President John Mahama’s desk for assent.

The E-Levy was introduced in 2022 by the previous NPP administration. It was designed to impose a 1.5% tax on electronic transactions such as mobile money transfers, bank transfers, and online payments.

The Finance Minister, Dr Cassiel Ato Forson, had earlier announced that the government would be abolishing the E-levy and the 10% tax on lottery winnings, also known as betting tax.

The Minister announced this when he presented the government’s first budget statement to Parliament on Tuesday, March 11, 2025.

The Minister also announced the cancellation of other levies, including the Emissions tax. He also announced that in an attempt to review the Value Added Tax system, the government will also eventually abolish the COVID-19 levy.

Dr Forson stressed that the government remained committed to social protection programmes with increased budgetary allocations to the National Health Insurance Scheme (NHIS), the Livelihood Empower­ment Against Poverty (LEAP) Programme, the School Feeding Programme, and the Capitation Grant.

Under the LEAP programme, benefits had been adjusted to reflect inflation and the number of beneficiary households will in­crease from 350,000 to 400,000 in July 2025.

The government has also raised the allocation for LEAP benefits by 30.8 per cent from GH¢728.8 million to GH¢953.5 million.

Furthermore, funding for the School Feeding Programme has been increased, with the cost of feeding per pupil per day going up by 33 per cent.

“These interventions reaffirm the govern­ment’s commitment to supporting vulner­able groups and ensuring social equity,” Dr Forson noted.

 

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