Govt begins overhaul of VAT system to boost business climate

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

This announcement came during a meeting with Wencai Zhang, a World Bank official. Ghana’s Finance Minister, Dr. Cassiel Ato Forson, discussed the country’s commitment to VAT reform. He emphasized collaboration with international partners in this effort.

Dr. Forson mentioned that an International Monetary Fund (IMF) team is in Ghana. They are working with local authorities to support the review process.

He pointed out that Ghana's 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 current VAT structure,” Dr. Forson stated. “That’s why we are overhauling the system.” He assured everyone that reforms would be completed before November's budget presentation.

This initiative aims to improve tax compliance and increase 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.