Current VAT system is terrible; it encourages tax criminals – Tax Partner at PwC Ghana

Abeiku Gyan-Quansah, a Tax Partner at PwC Ghana, supports reviewing Ghana's VAT system. He believes this will encourage more businesses to pay taxes. He described the current VAT system as terrible. Mr. Gyan-Quansah urged the Finance Minister to make significant changes.

He stated that the VAT system is punitive. This encourages businesses to evade taxes, leading to revenue loss. “If you are not making a profit of more than 6 percent, you become a tax criminal,” he said. A better VAT system would encourage compliance among private businesses.

Mr. Gyan-Quansah recommended bold steps from the government now. He emphasized that this is the right time for change during their resetting agenda. “The government is still in its first year,” he noted. He believes fixing the VAT system should be a priority.

He also mentioned that the government must build confidence among Ghanaians. This can be done by cutting waste and optimizing resources in the public sector. The public should participate in reducing expenditure while education on voluntary tax payments increases.

Mr. Gyan-Quansah stressed the need for fiscal reforms now. He warned that delaying action could hinder necessary decisions later on. “In an election year, you will be threatened with votes,” he explained, which may prevent doing what’s right.

The dialogue was themed “Fixing the Fundamentals: Is the 2025 Budget Ghana’s last shot at fiscal redemption?” It featured several experts, including Prof Peter Quartey and Prof Isaac Boadi, along with other notable figures in finance and economics.