The Ranking Member on Parliament’s Finance Committee, Dr Ato Forson

The Minority Leader, Dr Cassiel Ato Forson has alleged the imposition of a 5% Value Added Tax (VAT) flat rate on residential and commercial real estate by the government.

Dr Forson was speaking at the National Democratic Congress‘ (NDC) Moment of Truth press conference on Wednesday.

“He [Akufo-Addo] has also imposed a 5% VAT flat rate on residential and commercial real estate. Ladies and gentlemen, Ghanaians should get ready to pay 5% VAT anytime they buy a house from an individual or a real estate company going forward.

“If this law goes through; the VAT before parliament goes through – if you intend to buy a house, get ready to put 5% aside for President Akufo Addo and Alhaji Bawumia. For every house you buy going forward, you will pay 5% VAT on the quantum of the amount that you are supposed to buy. So if it is GH₵1 million you are buying you will pay GH₵50,000 to President Akufo-Addo and Alhaji Bawumia,” he alleged.

According to him, the rate is part of a new raft of tax measures that will be implemented once the 2024 budget statement is approved.

“These tax measures, which are currently before Parliament, include the following; an imposition of VAT on non-life insurance such as motto or car insurance, marine insurance, fire insurance, building insurance, goods in transit,” he said.

Accusing the Akufo-Addo and Bawumia led administration as being insensitive, the Ajumako Enyam Essiam MP said the new taxes will further deepen the woes of Ghanaians.

Ato Forson indicated that VAT will also be imposed on stationery items like paper, pens, textbooks, and domestic airlines among others, implying that if anyone buys a book or takes a domestic flight they would be expected to pay extra.