Finance Minister, Seth Terkper has assured Ghanaians they will feel the impact of government’s numerous economic policies in three years.
Parliament on Wednesday passed the special Petroleum Tax Bill , despite attempts by the Minority in Parliament to block the move.
The sky-rocketing inflation, high cost of living, high interest rates, among others, have generated massive opposition from government critics and pressure groups who have organized demonstrations to show their displeasure.
[contextly_sidebar id=”MpxVs6pWfQGuOH9Jjpqn1W1pTT9oN1eq”]The Minister was however, optimistic the situation will normalize in three years,saying, Ghanaians will see the impact of government’s promises within “a three to four year horizon.”
Government had projected that inflation would be kept at about 9.5 percent by the middle of 2014 but the latest figures from the Ghana Statistical Service (GSS) show inflation for the month of October has sky-rocketed to 16.9%.
Explaining why government has struggled to deal with the economy on the Citi Breakfast Show, Mr. Terkper said the fall in crude oil and cocoa prices on the world market inhibited the implementation of government’s home-grown policies.
Import tax on smart phones
The Minister dismissed assertions that the removal of the 20 percent import tax on smart phones was as a result of the local industry’s inability to meet the growing demands for the product.
Speaking to Citi News, the Finance Minister said government removed the import tax to check smuggling, make smart phones accessible to Ghanaians and increase government’s revenue.
“When we increased the duty it was with the view of leveling the plain field of local production because if you don’t do that you don’t protect your local production,” the Minister explained
Seth Terkper while presenting the budget revealed that government has removed import duties on smart phones to bridge the digital divide in the country.
The directive follows concerns raised by some importers of mobile and accessories over the negative impact the taxes were having on their businesses.
Ghana to receive gas to boost energy production
The Minister also revealed that government will soon receive gas from various sources to boost its energy generation systems.
“Thanks to the policies that we put in place, we are going to get our own gas that will help the situation. It is not 100 percent, but at least it will help the situation. We have also put a trajectory in place for the next three years as we take on our own gas…”
By: Marian Efe Ansah/citifmonline.com/Ghana
Follow @EfeAnsah