Ghana Loses 60% of VAT Revenue: New Reforms Aim to Boost Compliance and Tax Collection

• Ghana is losing nearly 60% of potential VAT revenue due to inefficiencies and non-compliance.
• Complex VAT amendments and the separation of levies from the main VAT regime have increased compliance challenges and created a “tax-on-tax” effect.
• Businesses cannot reclaim input tax on levies, raising costs for both businesses and consumers.
• The Ministry of Finance is initiating comprehensive VAT reforms to simplify the system, improve compliance, and boost revenue.
• Reducing the VAT compliance gap and reviewing tax exemptions are key to increasing Ghana’s tax-to-GDP ratio from 13% to 16%.

Source: msn.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.

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