Josiah
The government of President John Dramani Mahama has introduced a series of tax and price increases effective today, drawing widespread criticism from civil society groups, opposition parties, and sections of the public.
Among the newly implemented fiscal measures:
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A 21.9% VAT has been applied to non-life insurance premiums, prompting concern within the insurance industry and business community.
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Fuel prices have risen, with a 5% increase on diesel and 2% on petrol, a development likely to raise transportation costs and contribute to inflation.
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Electricity tariffs have gone up by 2.45%, further straining households and industries already grappling with rising utility bills.
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Locally manufactured plastic products have seen a 7% price hike, affecting both producers and consumers.
These developments come just months after President Mahama and his administration campaigned on a promise not to introduce new taxes or measures that would worsen the economic burden on Ghanaians. That assurance is now being questioned by many.
“They promised relief, but all we see is more hardship,” lamented Akosua Dapaah, a trader at Adum Market. “Prices keep rising, but our incomes remain the same.”
Opposition parties, particularly the New Patriotic Party (NPP), along with several policy think tanks, have condemned the increases, accusing the government of breaking its campaign promises. They are calling for a rollback of the new measures and greater transparency in policymaking.
In response, the Ministry of Finance defended the adjustments as “essential for fiscal sustainability and continued investment in critical social infrastructure,” citing global economic pressures and increased import costs as contributing factors.
