Economic Issues

50 new taxes to be introduced by govt as part of IMF deal – Ablakwa

50 new taxes to be introduced by govt as part of IMF deal – Ablakwa

theindependentghana.comMay 23, 2023 7:33 PM

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Member of Parliament from the North Tongu, Samuel Okudzeto Ablakwa, has predicted that government will soon introduce draconian tax measures as a result of the International Monetary Fund (IMF) deal.

He said about 50 new tax measures are likely to be introduced per analysis.

“The analysis we have shows that because of this (the IMF) bailout, there are going to be 50 new tax measures… income tax is coming to be progressive.

“There is going to be quarterly tariff adjustment. So, every quarter, electricity tariffs are going to go up, can you believe that, every quarter?” the MP asked.

Ghana has been able to secure an IMF loan of US$ 3 billion. On Wednesday, May 17, 2023, the Bretton Wood Institution approved the loan, with a $ 600 million immediate payout.

$350 million would be disbursed every six months for the three-year programme.

While some have described the loan as timely, others including the North Tongu MP, have expressed concerns over the conditions of the deal.

Mr Ablakwa intimated that: “this is going to be the most painful” and “the most bitter IMF programme.”

“I asked myself who negotiated this on behalf of Ghanaians? Does the person have a heart? Does the person care about Ghanaians?,” he asked in an interview with Metro TV.

Additionally, he said that the deal negotiated on behalf of the people of Ghana includes an additional debt restructuring programme.

Also, public sector employment will be restricted for the 3 years span of the IMF programme, he added.

About the IMF deal

On May 17, the Executive Board of the International Monetary Fund (IMF) approved a 36-month arrangement under the Extended Credit Facility (ECF) in an amount equivalent to SDR 2.242 billion (around US$3 billion, or 304 percent of quota).

The program is based on the government’s Post COVID-19 Program for Economic Growth (PC-PEG), which aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth.

The program will help Ghana overcome immediate policy and financing challenges, including through its catalytic effect in mobilizing external financing from development partners and providing a framework for the successful completion of the ongoing debt restructuring.

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