Abena Osei-Asare, Minister of State at the Finance Ministry, has reaffirmed the government’s commitment to improving tax compliance and addressing inefficiencies within Ghana’s tax system.
At the 12th Annual International Tax Conference hosted by the Chartered Institute of Taxation, Osei-Asare outlined the government’s strategy for revenue collection, particularly focusing on Value-Added Tax (VAT) and excise duties.
Osei-Asare highlighted that the government’s effort with the Medium-Term Revenue Strategy, detailed on the Finance Ministry’s website, aims to optimize revenue generation through improved tax collection mechanisms rather than new tax increases.
“We have a medium-term revenue strategy, and it’s available on our website.
Our primary focus is on how to raise the needed revenue effectively.
If improving VAT collection and excise duty collections will help us achieve this without raising taxes, we will pursue those measures.
Our approach is centred on enhancing compliance and reducing inefficiencies in the system,” Osei-Asare sta” ed.
In response to speculation that the government might reintroduce a 15 percent VAT on electricity if current disinflation trends continue, Osei-Asare emphasized that the government’s strgovernment’sprioritize efficiency improvements over new tax impositions.
Meanwhile, Tax Analyst Francis Timore Boi, speaking to Citi Business News, urged the government to seek broad consensus on any potential reintroduction of VAT on electricity.
Boi suggested considering a lower rate, stating, “Many countries “propose VAT on electricity at a lower rate than 22%.
Implementing a lower rate, such as 5%, 2%, or even 1%, might be more acceptable.”
The debate on “VAT reintroduction underscores the broader conversation about balancing effective tax policy with maintaining public support and economic stability.
