Ghanaian News

It will be insensitive to the economy to remove taxes on building materials – Kwaku Kwarteng

Chairman of Parliament’s Finance Committee, Kwaku Agyemang Kwarteng, has rejected calls to remove taxes on construction materials particularly cement.

Some MPs on Wednesday expressed worry about the rising cost of construction materials.

According to the MPs, government must immediately take steps to stabilise the price of cement and other building materials.

Making an argument, the Bole Bamboi legislator, Yussif Sulemena, lamented what he described as the “unbearable prices” affecting individuals and businesses.

“In 2019, the President cut sod for the construction of the Military Housing project at the cost of $100 million. At the time, cement was selling about ¢32 per bag.

“Today, with over ¢50 per bag, the cost of this project will automatically go up by an extra $100 million in the least,” Mr Sulemena addressed the House.

However, the Chairman of the Finance Committee, Mr Kwarteng, attributed the rise in cost partly to the advent of the Covid-19 pandemic.

The Obuasi West MP added that the issue is before his committee, and a report will soon be presented to the plenary but will not support any calls to remove taxes from these products.

“In my respectful opinion, it is insensitive to the economy. I say so because we have just come from the year 2020 in which the revenue shortfall was some ¢14 billion,” he said.

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