Ghana’s Complex VAT System Deters Investors, Tax Expert Warns

• 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.

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