IEA Says...........Use VAT to Fund Political Parties

The Institute of Economic Affairs (IEA), at a forum on Thursday to discuss the state funding of political parties has suggested in a draft bill that two percent of national revenue from the Value Added Tax (VAT) should be put in a special fund for political parties.When the state funds political parties, the IEA argues, there would be a level playing field for all parties in their quest to win political power.While the bill encourages foreign funding of political parties, it prohibits the parties from using money given to them by the state to fund demonstrations.The bill has been presented to the political parties for study. All the parties have welcomed the proposed bill but they expressed some concerns. The National Democratic Congress (NDC) is not happy that the fund can be accessed by independent candidates. The ruling New Patriotic Party (NPP) is worried that funding from thestate could result in the proliferation of new parties.The proposed bill also suggests that parties that win less than two percent of votes in any election year, will not be entitled to state funding. But the chairman of the Convention Peoples Party (CPP), Dr. Edmond Delle is not very enthused about this idea because his party won less than two percent of ballots in the last general election.