The Integrated Social Development Centre (ISODEC) has accused the government of adopting a “lazy approach” to rake in revenue for the government.<\/p>\n
Parliament has approved the controversial 17.5% Special Petroleum Tax bill, hoping to generating about GHc1.5 billion by the end of the year.<\/p>\n
ISODEC\u2019s Campaign Coordinator, Dr. Steven Manteaw in an interview on Eyewitness News<\/strong> stated that falling on the Value Added Tax (VAT) \u201cis the laziest thing that you can think of.\u201d<\/p>\n He described VAT as a \u201cregressive tax\u201d which makes \u201cboth the rich and the poor pay same.\u201d<\/p>\n [contextly_sidebar id=”bUJdYgz2cXGUjFTNZ6dAcu5E6Z6K9vCc”]The Minister explained that the bill will help the government rake in more revenue from the oil and gas sector.<\/p>\n But Dr. Manteaw said the bill \u201cis an unfortunate and a lazy approach to identifying potential sources of revenue to finance our budget.\u201d<\/p>\n He pointed out that \u201cif it\u2019s 17.5%, whether you are rich or poor, you pay the same rate but I believe there is a certain thinking in government that fuel is bought by only the rich.\u201d<\/p>\n According to him, there is a wrong perception in the public domain that it is only the rich who own vehicles \u201cbut please, there are many poor people who have taken loans to purchase vehicles.\u201d<\/p>\n \u201cThey have done it because it is a necessity because of the absence of an efficient public transport system and that is what compels many people. Many people will ride on buses if we had decent ones around and more efficient,\u201d he added.<\/p>\n Dr. Manteaw therefore indicated that for government to target fuel for VAT \u201csmacks of some laziness on the part of government because it\u2019s a soft spot, it\u2019s the easiest to target and this will have adverse effects in terms of its translation into higher prices of some petroleum products.\u201d<\/p>\n <\/p>\n By: Efua Idan Osam\/citifmonline.com\/Ghana
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