The government intends to raise the nation's Value Added Tax (VAT) by 2.5 percent in 2023, according to the Finance Minister.
He claims that the government's seven-point programme to revive the economy includes the proposal to raise the rate.
On Thursday, November 24, 2022, the Finance Minister made this statement while presenting the nation's 2023 budget to Parliament.
The standard VAT rate is 12.5%, with the exception of purchases made by wholesalers or sellers of goods, where a total flat rate of 3% is applied.
The government would make big structural adjustments in the public sector, he added.
He said Parliament that the government was committed to changing the narrative around the economic issues after acknowledging that there had been issues with the economy.
He declared, "The government is steadfast in its resolve to alter the dismal narrative and rebuild for a better future.
Meanwhile, Mr. Ofori-Atta has disclosed that the government will lower the contentious and onerous Electronic Transactions Levy (E-Levy) threshold from GHC 100 per transaction to 1% and reduce the existing 1.5% rate.
He claims that the action is just one of many programmes the government plans to do to revive the economy and decrease the extreme economic suffering Ghanaians are now experiencing.
The tax, which many observers have called regressive, was intended to raise at least GH6.9 billion, but due to the delay in the e-levy bill's passage, the amount had to be lowered to GH4.9 billion. After falling short of the GH1.46 billion goal for the first half of the year, the government was forced to once again reduce the tax measure, this time to GH611 million.
Additionally, the Ghana Revenue Authority (GRA) has revealed that thus far, the e-levy has brought in 328 million cedis (GH328m).
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