VAT not 3% as GUTA claims- Finance Ministry clarifies

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June 6, 2016 11:27 AM

According to the Finance Ministry all traders are expected to pay a 17.5% Value Added Tax on all chargeable goods and services and not 3% as being announced by GUTA.

The Ministry of Finance has denied assertions by the Ghana Union of Traders Association that it has granted a flat VAT rate of 3% to traders.

GUTA last week complained about the Ghana Revenue Authority’s reluctance to implement a purported 3% flat rate policy that GUTA claims the Ministry of Finance has sanctioned.

Head of Tax Policy Unit at the Ministry of Finance, Anthony Dzadra says government has not sanctioned a 3% flat rate.

“Taxes are sanctioned by parliament. And once parliament has not approved it, we cannot say the Ministry of Finance has sanctioned any 3% flat rate for VAT.”

Mr. Dzadra however revealed that the Ministry had agreed tentatively with GUTA about considering the flat 3% rate.

“ We however, made it clear to them that we have to get approval from parliament before we can implement”, he added

Mr. Dzadra was speaking to Accra-based Citi Fm.

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