According to him, the components of the budget indicates the government’s commitment to realizing all the promises it made to Ghanaians during the 2016 election campaign period.

[contextly_sidebar id=”SfJUQ0QoZZjN2jg6bIK2NWf9m9dWh6A1″]Dr. Bawumia made the comments when he attended a Muslim intercessory prayer at the Central Mosque in Accra, as part of events to mark the country’s 60^th anniversary.

The Finance Minister, Ken Ofori Atta, during the presentation of the 2017 budget statement and economic policy, announced that the government has earmarked various amounts for the implementation of flagship programmes such as one-district one-factory, and one-village one-dam.

It had also allocated some amount as seed money for the Zongo development fund, and the free Senior High School policy.

The Minister also announced that the government had abolished a number taxes including those on the importation of spare parts and the 1% special import levy.

But Seth Tekper, a former minister for finance under the erstwhile National Democratic Congress (NDC), expressed dissatisfaction with the budget statement, raising a number of questions including government’s decision to scrap levies on ‘kayayei’ only, when other people in that bracket also pay the same levies.

He also raised concerns that the scrapping of taxes on the importation of spare parts will result in dumping of inferior goods in the country. But in a rebuttal, the Vice President, Dr. Bawumia, said all the plans announced in the budget will help make the lives of Ghanaians better.

He also assured that, the government intends to implement more policies that will promote the country’s development.

“This is just the beginning. There is more to come from the president, Nana Akufo Addo, and so we are asking for your prayers for the President and Ghana.”

“The President wants us all to live harmoniously and work hard to achieve the dreams that he has for this country.”

–

By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post 2017 budget presents new sense of hope – Bawumia appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the move is not fair especially since truck pushers, sachet water sellers among other hawkers also pay similar tolls.

The Former Minister while speaking on the Citi Breakfast Show on Friday, clarified that although he was not against the ‘kayayei’ toll exemption, he thinks “they [kayayei] are not the only category [of potters] and you [Finance Minister] may be using discriminatory tax approach.”

[contextly_sidebar id=”UiW90DBjruSk0cs9j0w395SAHLHVHgWv”]The Minister of Finance, Ken Ofori-Atta, while presenting the 2017 budget statement to Parliament on Thursday, disclosed that government had scrapped some taxes including the kayayei market tolls.

He also announced the downward review of some taxes and levies government considered as “nuisance.”

But Mr. Terkper, told Bernard Avle on the Citi Breakfast Show that government must extend the tax relief package to cover other potters as well.

“Is it just Kayayei or does it also cover truck pushers or if you go to the north does it cover those who are riding motorbikes, tricycles which is a form of portage? So Kayayei is just one form of portage. Is the minister saying that all these are going to be eliminated or is just the use of kayayei to gain some sympathy?”

The Former Minister added that, “There are those who carry sachet water [on their heads] and risk their lives. Many of these are compelled to pay tolls because if you go to many district assemblies, market tolls are their main source of IGF [internally generated funds], apart from the district assembly common fund. So is the central government going to provide further support at a time we are also being told that the assemblies’ common fund is going to be paved for purposes of the [free] SHS?. Are you going to look at the category of all those who are in all that group and come up with a package for them or just something catchy to gain applause,” Mr. Terkper asked.

List of taxes abolished/reviewed

Below is the list of taxes either scrapped or reviewed downwards by the Akufo-Addo government.

– The 1% Special Import Levy

– Kayayei market tolls

– 17.5% VAT/NHIL on financial services

– 17.5% VAT/NHIL on selected imported medicines that are not produced locally

– 17.5% VAT/NHIL on domestic airline tickets

– Duty on imported spare parts

– 5% VAT/NHIL on Real estate sales

– Exercise duty on petroleum List of reviewed taxes

– Corporate income tax to be progressively reduced from 25% to 20% in 2018.

– Replace 17.5% of VAT/NHIL with 3% flat rate for traders

– Tax credits and other incentives for businesses that hire young graduates from tertiary institutions

– Tax incentives for young entrepreneurs

– Reduce special petroleum tax rate from 17.5% to 15%.

–

By: Godwin A. Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Scrapping Kayayei toll ‘discriminatory’ – Terkper appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the government noticed the challenges most businesses suffer, and has taken the action to ensure that they do not collapse or remain stagnant,  but grow to augment government’s efforts in providing more jobs.

Speaking on Eyewitness News, the Obuasi West legislator discounted claims that the removal of some import duties will promote the influx of inferior goods into the country.

He noted that, the government has put in place efficient mechanisms to raise funds to finance all the policies and programmes it announced in the 2017 budget statement.

The Minister for Finance, Ken Ofori Atta on the floor of Parliament on Thursday [March 2, 2017, announced about twelve taxes that have been abolished and a few others reviewed downwards.

Most of the taxes directly affect private businesses in sectors such as finance, real estate, trade, import and export.

He also announced the government’s commitment to roll out key programmes such as the one-district one-factory and one village one-dam this year.

Some members of the opposition National Democratic Congress (NDC), have cast doubt over about the ability of the government to achieve these programmes, but Mr Kwarteng says the government will realign its finances to achieve the desired results.

“The abolishing of special import duty on spare parts is designed to help businesses. If you want the businesses to grow, we need to remove their burden. All the tax removals that we have done, the stimulus package for industries that are dying, are all intended to boost our ability to produce and export. That will happen. We have rolled out these interventions and we are inviting the Ghanaian public to support us,” he said.

NPP’s 2017 budget is “deceptive and populist”

A former Deputy Minister of Finance, Cassiel Ato Forson, has described the 2017 budget statement and economic policy presented before parliament as deceptive and populist.

According to him, the budget does not fit into the country’s medium-term objectives and will lead the country into difficult times.

–

By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post Tax cuts will boost local businesses – Kwaku Kwarteng appeared first on Citi 97.3 FM - Relevant Radio. Always.

He is however appealing to the government to scrap the 2 percent levy, which largely affects second-hand clothing dealers.

“If parliament accepts this budget and approve it, the 1% special import duty will be abolished; but we still want to appeal to the ministry of finance that the special import levy we have 1% and 2%. The 1% people will be very happy to hear that the special import levy is gone; but we want to appeal to the ministry that it has 2% hiding there and of cause, maybe their attention wasn’t drawn; but we want to draw their attention that those who bring in second-hand clothing and other things at Kantamanto, they are still affected by the 2% special import levy.”

Mr. Awingobit in an interview on Eyewitness News, said the association welcomes all of the tax cuts and is confident they will help private businesses expand and help strengthen the country’s economy.

Ghana’s Finance Minister, Ken Ofori Atta announced on Thursday [March 2, 2017], during the delivery of the 2017 budget statement that government had abolished about twelve taxes including the 1% special import levy.

Some members of the opposition National Democratic Congress (NDC) have expressed dissatisfaction with some of the cuts introduced by the government, but Mr Awingobit noted that, the reduction in taxes on the importation of raw materials would have positive effects on the economy.

“If raw materials import duties have been abolished and you produce locally, commodity prices will come down and you will produce more quantities for local consumption and even export to other countries,” he noted.

He said government’s one-district one-factory policy, which was announced to commence this year, will also help the country produce more products it consumes locally to move the country from being import driven.

‘2016 budget deceptive’

A former Deputy Minister of Finance, Cassiel Ato Forson, described the budget statement as deceptive and populist. According to him, the budget does not fit into the country’s medium-term objectives and will lead the country into difficult times.

He said the tax cut among other developments announced by the government will only worsen the situation of Ghanaians and would lead to dumping of inferior goods.

–

By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post Abolish 2% import levy too – Importers Association plead appeared first on Citi 97.3 FM - Relevant Radio. Always.

The budget gave details of government’s expenditure and revenue generation plan for the year 2017. It also announced a number of tax reliefs for businesses in the country.

Click here to download the full budget statement. 

The post DOWNLOAD: Full 2017 Budget statement and economic policy appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to Dr. Sarkodie, the country spends too much resources on the various earmarked funds which have not been effectively managed over the years.

[contextly_sidebar id=”T5CPBZZtzwAtvP9EMaV2upxhXRUpLwVl”]“Three components have always taken so much of the resources; the earmarked funds, interest payments and salaries and wages. So we have to deal with these 3 main components. We can start by tackling the ten earmarked. Most of them are not being efficiently managed. The District Assembly Common Fund, Road fund, GETFund, and all the others are not effectively being managed well.”

“The ministries must be able to review all the 10 earmarked funds and abolish some of them they think should be abolished; and reduce those that need to, in order to create space for government to operate,” he said.

Speaking on Eyewitness News on [Wednesday, March 1, 2017], ahead of the budget statement today [Thursday], Dr. Sarkodie said although he expects the New Patriotic Party (NPP) to reiterate its manifesto promises and outline the means for financing them, they must also announce ways of reducing expenditure and increase the country’s income.

He advised the government to consider targeting the un-taxed informal sector by introducing new taxes to raise money.

He further urged the government to create a friendly business atmosphere to allow private businesses contribute effectively to the economy.

“The budget will not be anything different from the manifesto of the NPP because most parties implement their manifesto. I would want to suggest that the government put in place the environment for the private sector to participate well. We must reduce the policy. We must make sure that the energy sector must be revamped because if you are inviting someone to invest and set up a company in your country now, I don’t think that company can thrive.”

“I’m not saying they [the government] are ambitious, I don’t think they are ambitious; but whatever strategy they can use to get the funds, they should use it to finance their policies,” he said.

Ghana’s finance minister, Ken Ofori Atta, is expected to deliver the NPP government’s first budget statement before parliament today, [Thursday, March 2, 2017], which many are expecting to contain details of how the government intends to finance its various election 2016 campaign promises.

–

By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post Gov’t must review payment of statutory funds – Economist appeared first on Citi 97.3 FM - Relevant Radio. Always.

They say the government must announce its plans for job creation to employ the many teeming youth of the country who are currently unemployed.

[contextly_sidebar id=”ucgzBU6hrbW0VAVYcqyQJ4Jt7ooSyB3t”]The New Patriotic Party (NPP) government, will present its first budget statement to parliament on Thursday, 2^nd March, 2017.

The statement is expected to detail government’s projected revenue and expenditure for the 2017 fiscal year.

President Akufo Addo last week announced in his State of the Nation Address that the budget will provide a clear policy direction of his government.

But ahead of the presentation by the Finance Minister, Ken Ofori-Atta, opposition political parties are expecting the government to reveal how it intends to fund its key campaign policies.

The Convention People’s Party CPP, for instance, wants the government to clearly state how it intends to cut down on the high rate of youth unemployment.

The Communications Director of the CPP, Abdul Kadir Rauf, told Citi News that, “the massive support that the NPP got largely came from the youth. The youth were there making noise and advocating for Nana Akufo-Addo to come to power because they were expecting a fair share of the national booty. So we expect that in the budget, a significant amount of money be earmarked to engage in youth enterprises development to give opportunities to the youth, those who have their own initiatives and want to bring it to limelight. And also clear cut job creation opportunities and avenues should be created. We are expecting that in the budget.”

“We want to see a significant amount of money put into the agriculture sector so that it does not only create jobs for the majority of youth in that sector, but it also creates opportunities for the aging population.”

He added that, on education, “we all know the NPP made a lot of political capital out of the free SHS policy of Nana Addo Danquah Akufo-Addo, so we want to hear the amount of money that will be earmarked for that purpose.”

Meanwhile, the National Chairman of the People’s National Convention (PNC), Bernard Mornah, has told Citi News his party is expecting the minister to highlight how the government intends to fund some of its major campaign promises such as the Free SHS policy, restoration of teacher and trainee nurses allowance, one-district one-factory programme, and the one-dam one-village policy.

He stated that, “if you listened to president Akufo-Addo during the State of the Nation address, he made mention of the Takoradi to Paga railway line, that it will be initiated this year. We want to see what budget appropriation will be made towards that direction. And above all, ministries by ministries starting from Agriculture, what budgetary allocation will be made to ensure that they are able to deliver on their mandate.”

Many Ghanaians are also expectant of the government’s first budget.

Some told Citi News they want the document to spell out a clear road map on dealing with youth unemployment in the country, as well as addressing the country’s ailing energy sector.

–

By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post PNC, CPP want 2017 budget to address unemployment appeared first on Citi 97.3 FM - Relevant Radio. Always.

The statement will detail the projected revenue and expenditure between January and March next year.

This practice is in accordance with what the Executive does almost every election year to avoid spending hiccups in case of a transition in government.

This is also in accordance with a 2017 budget preparation calendar by the Ministry of Finance.

The Deputy Majority leader, Alfred Agbesi disclosed this when he addressed the House on Friday.

“The Minister of Finance is expected to present to the House on Thursday October 20, 2016, the expenditure in advance of appropriation from January to March 2017 as well as the revenue and expenditure for the government of Ghana for the same financial year,” the Deputy Majority Leader remarked.

The decision to present an advance appropriation follows from the fact that there is not going to be a conventional budget presentation in November as is associated with election years.

Government in July this year presented a revised budget statement to Parliament when it sought approval for an additional 1.8 billion cedis for the remaining of 2016.

At the time, the major developments on the international market scenes that caused a reduction in accrued revenue prompted government to review its anticipated revenue targets to meet the prevailing prices.

Some of the revisions to the revenue components were that of crude oil prices.

The price of a barrel of crude was revised downwards to US$45.35 from US$53.05 per barrel.

Also, total petroleum receipts for 2016 is now estimated at GH¢1.4 billion (0.8 percent of GDP), compared with the 2016 Budget estimate of GH¢2.0 billion (1.3 percent of GDP).

Likewise, total expenditure and arrears clearance were revised downwards, from GH¢46,445.7 million (29.3 percent of GDP), to GH¢46,297.0 million (27.8 percent of GDP) mainly on account of lower spending from oil revenues.

Earlier in November 2015, the 2016 Budget statement indicated that government would require about 50 billion cedis to meet its expenditure needs for 2016.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Finance Minister presents 2017 1st quarter budget Thursday appeared first on Citi 97.3 FM - Relevant Radio. Always.