Ghana’s VAT system is distorted, we must fix it – Finance Minister Dr Ato Forson

Finance Minister Dr. Cassiel Ato Forson has called for urgent reforms to Ghana’s Value Added Tax (VAT) system, describing it as distorted and burdensome for businesses and consumers.

Speaking on Joy News’ PM Express after presenting the 2025 Budget, he highlighted that Ghana’s effective VAT rate of 21.9% is the highest in Africa, making it inefficient and complex.

He pointed out issues such as cascading taxes, multiple VAT structures, and double taxation, which hinder economic growth. The government plans a comprehensive review in 2025, engaging stakeholders to ensure a fairer and more efficient tax system.

The proposed reforms align with the Mahama administration’s commitment to reducing the tax burden while improving revenue collection.