The Minister of Finance, Ken Ofori-Atta has indicated that there will be no increase in Value-Added Tax (VAT) as speculated on the social media and other platforms.
Reports making rounds in various media outlets had it that the government intends to increase VAT from 17.5% to 21.5%.
However, the Finance Minister said on Thursday, 19 July 2018 while presenting the 2018 Mid-Year Budget Review to Parliament that there will be no increase in VAT and appealed to Ghanaians to “stop taking directions on economic policies from Social Media”.
“Mr Speaker, last year we abolished numerous taxes. The scale of tax reductions had never been implemented in the 60 years of Ghana’s economic history since independence”.
"I will like to inform the house Mr Speaker that there will be no increase in VAT",
“The evidence shows that the economy has responded positively to these tax cuts. What is also clear to us Mr Speaker is that we are not collecting as much as we should”.
"The solution to this problem, however, is not necessarily, imposition of many taxes, we must first make sure that we ensure compliance with existing tax laws, plug the leakages in the existing system, ensure value-for-money for the expenditures that government undertakes and ensure Mr Speaker, that the wealthy also pay their fair share”.
“Mr Speaker, any taxes should be to elicit socially desirable outcomes such as a better environment in this regard”.
The Finance Minister, Ken Ofori- Atta in his closing remarks reiterated that “there will be no VAT increment”.
Mark F. silveronline24 / SilverFM