Finance Minister Dr. Ato Forson has announced plans for a comprehensive review of Ghana’s Value Added Tax (VAT) system, citing distortions that require urgent reform.
According to him, simply adjusting the VAT rate or removing certain components will not solve the structural issues within the tax regime.
Speaking on the government’s approach on The Point of View on Channel One TV with Bernard Avle on Wednesday, March 12, 2025, Dr. Forson revealed that Ghana has sought technical assistance from the International Monetary Fund (IMF) and is in the process of establishing a task force to work with the IMF’s recommendations.
“We see the entire VAT regime as a tax that has been distorted, and it will require a comprehensive review. If you only pick the rate and remove it, you are not solving the problem,” he stated.
He emphasized the need for a well-structured VAT system, pointing out an inconsistency in Ghana’s tax framework.
“I have never seen a country where you operate both sales tax and ad-valorem tax at the same time. No one does that. You choose one of the two,” he remarked.
The government aims to implement the VAT reforms by the end of the year, ensuring a more efficient tax system that aligns with international best practices.