VAT is about 95 per cent "successful" - Spio-Garbrah

Tamale (Northern Region), 25th March ?99 ?

Mr Ekwow Spio-Garbrah, Minister of education and chairman of the Value Added Tax (VAT) service board, has said the tax system introduced three months ago, is about 95 per cent successful. He said the sustained educational campaign on the system has led to more companies than expected registering to operate it. Six thousand companies were targeted for registration but the secretariat has over 13,000.

Mr Spio-Garbrah was briefing newsmen in Tamale on Thursday as part of the board's three-day fact finding and study tour of the northern region to ascertain progress being made in the operation of VAT. 80 per cent of the companies filed their VAT returns before the scheduled date last month. He promised that the vat service will take the necessary measures to ensure that the new tax system works and does not have any adverse impact on the poor. Mr Spio-Garbrah warned that the service will begin applying sanctions against companies which consciously violate the VAT law. "We are giving them the last chance to correct the anomalies or face the rigours of the law". Mr Ezekiel Asamoah, acting commissioner of the service, said in view of the unexpected high number of registered companies, the service will be compelled to increase its staff position from the present 500 to the 650 ceiling.