'Better, wiser, faster VAT coming' - Isaac Adongo promises bold tax reform

Isaac Adongo, a leading economic voice for the NDC, says Ghanaians should prepare for major tax changes. The government plans to introduce a new Value Added Tax (VAT) system. He describes it as “better, wiser, faster.”

Adongo spoke on PM Express on JoyNews on May 14. He addressed criticisms about not scrapping the COVID-19 Health Recovery Levy. This was a campaign promise ahead of the 2024 elections.

The Bank of Ghana Board Member rejected claims of failure. He stated that the tax is under review as part of broader VAT reforms.

“We haven’t failed,” Mr. Adongo said. “The time and processes are not complete yet.”

He explained that the government is overhauling the VAT system. This includes redesigning the COVID levy framework to raise revenue while easing taxpayer burdens.

“We are reviewing both the Value Added Tax and COVID levy,” he noted. The goal is to create a tax regime that meets revenue needs while providing relief.

Host Evans Mensah asked if the NDC had overpromised in its manifesto. Adongo maintained his position firmly.

“No,” he replied. “Just because we wrote it down doesn’t mean we can’t do it.” He emphasized that VAT reform is ongoing and aims to improve efficiency.

He assured Ghanaians that the new VAT system will eliminate the COVID levy. It will also enhance fairness in tax collection.

“By then, we will deliver a robust VAT regime without the COVID levy,” he concluded.