The Value Added Tax Amendment bill, which would have raised the rate by 2.5 percent, has been approved by a majority of lawmakers.
The contentious law required a head count in order to pass by a vote of 135 to 136.
Members of the Minority advocated against raising the VAT rate because they believed it would make Ghanaians’ already difficult situation worse.
Dr. Cassiel Ato Forson, the ranking member of the financial committee, and Isaac Adongo, his assistant, contended that the timing was incorrect.
However, the majority of MPs emphasized that the government needed the income to revive the economy and urged the NDC MPs to support the bill’s approval.
After the voice vote, minority chief whip Muntaka Mubarak ultimately had to order a head count.
However, the NDC MPs’ resistance was reduced as a result of the procedure because they could only get 135 of their members vs 136 for the majority.
The backbenchers, however, were incensed by the minority leadership’s choice not to request a division, which would have necessitated secret voting.