- PWC Tax Partner warns that Ghana’s complex VAT system with cascading levies scares away investors and hurts business competitiveness
- Ghana charges almost 22 percent VAT compared to maximum 20 percent in other African countries, making it less attractive for investment
- Current VAT system includes 15 percent standard rate plus multiple levies totaling 21 percent, with separate flat rates of 3 and 5 percent for different sectors
- Government announced plans to introduce unified VAT flat rate and scrap some rates, but expert doubts this will eliminate the problematic cascading effect
- Tax complexity makes compliance difficult for businesses and reduces government revenue, requiring true simplification to improve the system
Source: thebftonline.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Ghana"
- Ghana Parliament Passes 2025 VAT Bill to Simplify Tax System and Boost Economic Growth
- Key VAT Reforms in Ghana’s 2026 Budget Statement
- Parliament Approves Value Added Tax Bill 2025
- Ghana Parliament Passes VAT Bill Exempting Small Businesses, Reducing Rates, and Abolishing Levies
- Ghana Passes 2025 VAT Bill, Unifying Tax Structure and Easing Burden on Small Businesses
