Government initiates comprehensive review of VAT regime - Dr Ato Forson

The government has started a review of its Value Added Tax (VAT) system. The goal is to simplify the system and improve the business environment.

This was announced during a meeting with Wencai Zhang from the World Bank Group. Ghana's Finance Minister, Dr. Cassiel Ato Forson, attended this meeting.

Dr. Forson emphasized Ghana’s commitment to reforming the VAT system. He mentioned that they will work closely with international partners.

A Technical Assistance Mission from the International Monetary Fund (IMF) is currently in Ghana. They are collaborating with local authorities to support this review process.

Dr. Forson pointed out that the current VAT rate is 21.9%. This rate is one of the highest in Africa and causes compliance issues for businesses.

“We understand the challenges of the existing VAT structure,” Dr. Forson stated.

He added, “That is why we are overhauling the system.” He assured everyone that reforms would be completed before November's main budget presentation.

This initiative aims to improve tax compliance and enhance revenue mobilization. It also seeks to make the tax system more friendly for businesses.

The World Bank supports Ghana’s reform efforts and will work closely with the government on this project.