Some Tax Analysts have tasked government to enforce the compliance of payment of VAT if it is to double VAT collection.
Their sentiment comes at the back of government’s plans to double VAT collection from 10 billion cedis to over 20 billion cedis.
Ahead of government’s preparation towards the 2019 budget in November 2018, Finance Minister Ken Ofori-Atta announced that one of the major areas of the budget is to double VAT collection.
This follows the high deficit in revenue generation which is around 11 percent.
The Finance Minister believes the move can sustain government’s expenditure after exit from the IMF by the end of the year.
However in achieving this, Senior Associate Consultant at Ali Nakyea and Associates, William Demetia says government must enforce compliance.
He believes it is the ultimate way to achieve the result.
“As to how we achieve that is the issue. I have always maintained that the best way to achieve or increase revenue is to ensure or enforce compliance” he said.
Ghana is said to be one of the countries in West Africa with the lowest VAT collection. Although Mr Demetia insists the idea is laudable, he says increasing VAT will not be the best solution to achieving this feat.
“I don’t support an increase in rate. This is because for all indirect taxes it is regressive. It impacts the poor the more. So for those who are not earning so much it is quite regressive for them” he added.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana
The post GH¢20 bn VAT target to thrive on compliance – Analyst appeared first on Citi Business News.
Send us Your Story
Do you have an article or story to publish? Send it to us by email: email@example.com.
Do you want us to cover your event, contact us by email: firstname.lastname@example.org or by WhatsApp: +233247516850.