Editor of the Informer Newspaper, Andy Kankam
Editor of the Informer Newspaper, Andy Kankam, has disclosed the decision of the government to increase Value Added Tax (VAT) to 2.5 percent will result in businesses finding means to avoid payment altogether.
He described the VAT increase as worrying, arguing “this is not the right time for its implementation.”
Ghanaians will from 2023 pay more for goods and services, as government has reviewed upwards the Value Added Tax (VAT) by 2.5 percent.
This was announced by the Finance Minister, Ken Ofori-Atta on Thursday when he delivered the 2023 budget statement in Parliament.
The Finance Minister said this review was part of a seven-point agenda to boost the economy.
Mr. Ofori-Atta further indicated that the increase is expected to yield GH¢2.70 billion, which will be used to augment funding for road infrastructure development.
Reacting to this, Andy Kankam shared some businesses are already refusing to pay VAT at the existing rate. “Many use legal means to avoid paying taxes and with the increment of VAT, the tax avoidance will increase and that must be of concern to government.”
He argues government may not realize its target just like it failed with the e-levy. “Times are hard for Ghanaian and I think it is a wrong time for government to increase VAT,” he reiterated.
