Hohoe (Volta Region) 11 Oct 1998 Mr Nat Aduadjoe, Member of Parliament for Hohoe North, claims that the refundable element in the Value Added Tax (VAT) provides an attractive incentive for businesses to maintain reasonable price levels and help government maximise revenue.
He said apart from the exemption of basic necessities from the tax, consumers would hardly realise that they are paying taxes on goods and services affected since the tax is reflected in their prices.
Mr Aduadjoe said this is what makes VAT a consumption tax that every consumer would have to pay unlike the service and sales taxes which are specific, limited in scope and open to abuse.
He noted that circumstances surrounding the introduction of the VAT this year are much more favourable than they were in 1995 when it was aborted. The registration of VAT will be a continuous process to ensure that all businesses that would qualify in future would be able to register, he said.
Mr Aduadjoe said the government’s ability to solve the infrastructural needs of schools and other institutions depends on an efficient tax system such as the VAT and how fast it is put into operation. He called for maximum public support to make the new tax system successful.. GRi
