Ghana’s government has formally started a thorough assessment of its Value Added Tax (VAT) system with the goal of streamlining the administration and enhancing the nation’s economic climate.
A high-level meeting between Ghanaian officials and Wencai Zhang, the World Bank Group’s Managing Director and Chief Administrative Officer, verified this progress.
Ghana’s finance minister, Dr. Cassiel Ato Forson, expressed the nation’s commitment to working closely with foreign partners to modernize the VAT system during the meeting.
A Technical Assistance Mission from the International Monetary Fund (IMF) is presently in Ghana, assisting the review process by collaborating with local authorities, Dr. Forson noted.
He admitted that the present effective VAT rate of 21.9%, which is among the highest in Africa, has caused firms to face inefficiencies and compliance challenges.
“We are fully aware of the challenges posed by the existing VAT structure,” Dr. Forson said. “That is why we are undertaking a complete overhaul of the system. I can assure our partners and the Ghanaian public that this reform process will be concluded before the main budget is presented in November.”
The program is regarded as an important step in increasing revenue mobilization, improving tax compliance, and making the tax system more business-friendly.
The World Bank reaffirmed its commitment to collaborating closely with the government to establish a more effective and equitable tax system and offered assistance for Ghana’s reform initiatives.
Source: newsthemegh.com