By: Franklin ASARE-DONKOH
The Minister of Finance, Dr. Cassiel Ato Baah Forson, has hinted that the government, through the Finance Ministry, has commenced a review of the Value Added Tax (VAT) system.
According to the Finance Minister, the review is aimed at addressing the bottlenecks faced by businesses under the current structure.
Dr. Ato Baah Forson made this known in a Facebook post on Monday, 14 April 2025.
He further explained that the process is already underway, with support from a Technical Assistance Mission of the International Monetary Fund (IMF), which is currently in the country.
According to the Minister, the existing VAT regime is creating difficulties for businesses nationwide. With an effective rate of 21.9 percent — one of the highest in Africa — compliance has become a major concern for many firms.
Dr. Forson announced that the government is collaborating with the IMF and the World Bank Group to carry out the review.
The goal, the Finance Minister stated, is to simplify the system and make it less burdensome for businesses ahead of the presentation of the next national budget in November.
“A complete overhaul of the VAT system is actively under consideration. The problem is known, and it is being addressed,” he said.
The review is expected to help improve tax compliance, increase revenue collection, and reduce the strain on businesses, particularly small and medium-sized enterprises.
