The government has started a review of Ghana’s Value Added Tax (VAT) system to help address the challenges businesses face under its current structure, the Ministry of Finance has said.
The Minister of Finance, Dr Cassiel Ato Forson made this known in a Facebook post on Monday, [April 14, 2025.]
He said the process is already underway, with support from a Technical Assistance Mission of the International Monetary Fund (IMF) currently in the country.
According to him, the existing VAT regime is creating difficulties for businesses nationwide.
With an effective rate of 21.9 percent, considered one of the highest in Africa, compliance has become a major concern for many firms.
Dr Forson said the government is working with the IMF and the World Bank Group to carry out the review.
The goal, he noted, is to simplify the system and make it less difficult for businesses ahead of the presentation of the next national budget in November 2025.
At a recent meeting with the Managing Director and Chief Administrative Officer of the World Bank Group, Mr Wencai Zhang, Dr Forson gave an update on the ongoing work and said steps are being taken to complete the process before the budget is laid.
“A complete overhaul of the VAT system is actively under consideration,” he said. “The problem is known, and it is being addressed.”
The review is expected to help improve tax compliance, increase revenue collection, and reduce the strain on businesses, particularly small and medium-sized enterprises.
Source: graphic.com.gh
Related Posts
