The Minister of Finance designate, Dr Cassiel Ato Baah Forson, has promised to carry out significant reforms in the implementation of the Value Added Tax (VAT) .
He said this will give huge relief to businesses that are suffocating under the presented chaotic and distorted implementation of the VAT.
Dr Ato Forson was speaking during his appearance at the Appointments Committee of Parliament on Monday.
He said concerns raised by the business community so far include unpredictable tax policy and administration such as distorted VAT regime.
“To this end the government will undertake a comprehensive review of Ghana’s VAT regime as casptured in the manifesto of the National Democratic Congress (NDC), Dr Ato Forson said.
He said this is intended to provide relief to households and businesses. The Minister of Finance designate said in this vein, the government will adhere to the
underlying principles of VAT by abolishing the Covid Levy, reversing the decoupling of GETFund and NHIL from the VAT and reducing the effective VAT rate to make life bearable for Ghanaians.
Dr Ato Forson said the government will also take steps to reverse the VAT flat rate regime, upwardly adjust the VAT registration threshold to exempt micro and small businesses from the collection of VAT and improve compliance through public education and awareness.
He said the government’s plan to reform the VAT regime is aimed at implementing simplified and transparent tax regime.
Source: www.kumasimail.com
