The wage negotiations between government and labour unions for wage increase ends unsatisfactorily, while the demand for base rate of the minimum wage expected to be increase to 75% was not met by the government as proposed by labour union to help manage high cost of living in the country.
The government proposal across board of 23% was finally agreed on; going forward the government is prepared to enter into another negotiation when the needs arise. The economic reality facing the country now looks as if the government is bankrupt of ideas in managing the economy.
The Senior Lecturer in Public Financing Management and Accounting at Accra Technical University Dr. Ibrahim Zubairu said this on Adekyee Mu Nsem morning show on Ahotor 92.3 FM hosted by Citizen Kofi Owusu in Accra
The Senior Lecturer, said looking at the projection and expectations from the budget; he is of the view that the government is likely going to increase Value Added Tax (VAT) in this severe economic hardship in the country.
He said that, going forward he believes that taxes on sanitary pad and luxury tax will be scrap, and we should prepare for another tax known as carbon emission tax. This he believes is just an attempt by the government to seek approval from parliament to go in for another loan facility from the Green Bank.
He reiterated that, the government policy proposal in the past seven years on; from production to taxation does not achieved any economic significance rather tax burden on the industry and the individuals.
Dr. Ibrahim Zubairu said, is likely the government has an intention to grant tax waiver for two companies in this difficult times where in the past seven years this tax waiver components granted to some companies does not yield any economic benefits.
He opined that taxation must be affordable and wide and must come with voluntary compliance that makes a good tax regime for productivity.
The Senior Lecturer in Public Financing Management and Accounting at Accra Technical University Dr. Ibrahim Zubairu said he does not expect any meaningful message from the budget statement
AYM Kukah. E:mail: kukahalexander7@gmail.com
