3% VAT will benefit Ghana’s economy – Akufo-Addo

The 3 percent VAT Flat Rate policy that is currently being opposed by some business owners will be of great benefit to the economy of Ghana.

This is an assurance that was given by President Nana Addo Dankwa Akufo-Addo.

The president was speaking at the launch of the National Entrepreneurship and Innovation Plan, on Thursday (July 13, 2017).

He argued that the policy will help get Ghana’s ailing economy back on track.

The implementation of the 3 percent VAT Flat Rate policy started on July 4, 2017, to replace the previous 17.5% Input-Output VAT computation approach.

The Ghana Revenue Service has said that the new system will reduce the stress involved in tax filing as compared to the previous VAT regime.

Despite this assurance, some players have said that the new regime will lead to double taxation.

The Association of Ghana Industries, Beverage Manufacturers, Wholesalers and other groups have called on the government and other stakeholders to suspend the new regime.

But the government has indicated that it will not suspend the implementation of the 3 percent VAT Flat Rate.

A Deputy Finance Minister, Kweku Kwarteng said “We do not have the power to freeze a law that has been passed by Parliament. We took this [3percent VAT Flat rate] to parliament, the law was passed.”