Felix Kwakye Ofosu has highlighted the urgent need for a complete review of Ghana’s Value Added Tax (VAT) system, citing its negative impact on businesses.
Speaking on Joy Prime, he stated that the current VAT structure has been distorted, leading to excessive charges that are among the highest in the world.
“The minister has said that the whole VAT system has been distorted, and people are paying far more than they should. The decoupling of NHIS and GETFund levies from the VAT itself proved disastrous for businesses.
“It was a backdoor way for the government to impose a 5% increase on VAT charges, so the effective rate is now over 22%, which is one of the highest anywhere in the world,” he explained.
According to Kwakye Ofosu, addressing only parts of the problem will not bring the necessary relief, making a comprehensive review essential.
“To touch just one component and leave the rest will not address the problem. There’s a need for a comprehensive review, and the minister has initiated that. He hopes that by the close of this year, that would have been achieved,” he added.
