Government To Increase Prices of Beverages/ Minerals | Secret ballot all the way

Government To Increase Prices of Beverages/ Minerals | Secret ballot all the way

Ghanaians must prepare themselves to pay more for increase prices of beverages/ minerals. The Ghanaian government has presented three major tax bills to parliament to raise a lot more revenue for the country. The decision to introduce the extra revenue measure is to save the economy and as a measure to fulfill a precondition to obtain a bailout from the International Monetary Fund (IMF). It is expected that, if the majority in parliament sense danger that the minority in parliament will not cooperate, then the decision will go for a ballot vote. In the current culture of secret ballots, some members of the minority may as well break ranks with their members to vote for the tax to pass.

Highlights

1. Even though the International Monetary Fund does not impose any condition on countries seeking financial assistance, the fund will usually ask the country to achieve a particular goal or status.

2. The primary general condition that the International Monetary Fund would give to distressed countries is to make sure their deficit and debt levels are sustainable.

3. The general condition for a sustainable deficit or sustainable debt involves either cutting down on expenses or raising more revenue to cover the over-expenditure.

4. It is for this reason the government of Ghana decided to introduce more tax measures on the various parts of the economy.

5. The tax rates include a minimum of 5% on beverages and/or sugary products.

6. The implication of the 5% tax rate on beverages is that manufacturing companies will transfer the tax cost to the customers.

7. An indirect purpose of taxes on consumable products is to reduce the consumption of the product. Also, the reason may be to raise revenue to establish a system or facility that should deal with complications that arise out of the consumption of such products.

8. An example is the tax on alcohol. The reason is to reduce alcohol consumption or to build hospitals to deal with complications of alcohol consumption.

See also: Reasons Minority MPs Betrayed Ghanaians To Approve More Ministers

9. Therefore, the tax on beverages and minerals is not just to increase prices of minerals/ minerals, but to also discourage the consumption of sugary products. Also, the attempt is to raise revenue for health insurance and the building of hospitals to deal with complications arising from the consumption of beverages.

10. The problem, however, is whether citizens can continue their daily lifestyles that are not too different from what they are used to.

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