President justifies increases in levies
President John Dramani Mahama has stated that the recent levies introduced by the government are in the interest of the nation.
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He said he was not a tax-happy President and that the introduction of the taxes, although unpopular, was necessary.
Public outcry
There has been public outcry over the massive increment in fuel prices resulting from the increased tax component on petroleum products.
Additionally, there have been massive utility tariff hikes.
These have combined to send shock waves through organised labour which is threatening a series of actions, including strikes, if the government does not reverse the biting development visited on workers.
I won’t visit hardships on people
But, addressing journalists at the Flagstaff House yesterday, the President said he did not take interest in visiting hardships on the people.
“It’s not every decision that will be popular, but what was I elected for as President… to take popular decisions? If I take popular decisions for you to be happy with me, this country will be on the ground by now. Do I take pleasure in imposing taxes on people?
“But you look at the alternative and the alternative is worse and so you must take decisions that are in the national interest,” he said, adding that the benefits might not be immediately felt now but in future.
He said the petroleum levies were going to clear some debts and address the huge funding gap.
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President Mahama noted that refreshingly, however, transport fares had not gone up, which meant that the vulnerable were not feeling the heat of the increases.
Difficult times
All over the world, he said, countries were going through difficulties resulting from the slump in crude oil prices and other economic challenges, adding that this year was expected to be tough for Ghana and other countries.
The development also informed the introduction of the energy levies in order to meet the uncertainties of the future, he said.
He said in the normal sense, the level of taxes to revenue in Ghana, a lower middle-income nation, should be at 22 per cent but it currently stood between 17 and 18 per cent, and added that the government would be careful not to introduce more taxes.
Ameri deal
On the Ameri deal, President Mahama said the government had requested that it be examined again, saying the government would take any remedial measures as and when such action became necessary.
IMF programme
He stated that bad press affected Ghana’s credit ratings and it was important to move to the International Monetary Fund (IMF) to restore policy credibility.
Ghana, he stated, had not regretted going for the IMF programme, as it had helped the government to develop its home-grown policies.
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