Government Initiates Major VAT System Overhaul to Improve Business Environment
Sweeping Changes Planned for Ghana's VAT Regime
- The government of Ghana has officially begun a comprehensive review of its VAT
- Dr. Cassiel Ato Forson, outlined the country’s commitment to reforming the VAT system
- Dr. Forson noted that a Technical Assistance Mission from the IMF
The government of Ghana has officially begun a comprehensive review of its Value Added Tax (VAT) system, with the goal of simplifying procedures and fostering a more business-friendly climate nationwide.
This development was confirmed during a high-level meeting today, Monday, April 14th, between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group.
During the discussions, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, outlined the country’s commitment to reforming the VAT system through close collaboration with international partners.
Dr. Forson noted that a Technical Assistance Mission from the International Monetary Fund (IMF) is currently in Ghana, working alongside local authorities to provide support for the review process.
He acknowledged that the current effective VAT rate of 21.9%, which is among the highest in Africa, has created compliance challenges and inefficiencies for businesses operating in Ghana.
“We are fully aware of the challenges posed by the existing VAT structure,” Dr. Forson stated. “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.”
This initiative is considered a critical step towards improving tax compliance, enhancing revenue collection, and making the tax system more conducive to business growth and investment in Ghana.
The World Bank expressed its support for Ghana’s reform efforts and reaffirmed its commitment to working closely with the government to establish a more efficient and equitable tax regime.
