Scorecard: Ghana’s economy could be performing better – Seth Terkper

Former Finance Minister Seth Terkper speaking at Joy News’ Scorecard event.

Former Finance Minister, Seth Terkper reproved current government policies that he believes have left the economy reeling.

There are several factors the government of Ghana cannot control – like ballooning crude oil prices and a strengthened U.S. dollar, Terkper cited. But taxes, he said, have swelled to new extremes.

“The VAT has had a bad impact,” he told Joy News’ Raymond Acquah on a panel discussion analyzing NPP’s performance after nearly two years in power.

While experts wrongly predicted that the VAT would rise, the tax was “restructured.” As it stands, the VAT rate is at 12.5% and has been separated from the 2.5% National Health Levy that used to be combined. VAT is charged on all taxable suppliers and imports in addition to a 3% flat rate for small companies. 

Terker explained that the way taxes have been increased has affected many of Ghana’s working-class, specifically in the service sector, who already work for paltry wages.