Ghanaians to pay more for goods, services as VAT goes up 2.5% in 2023

Ghanaians to pay more for goods, services as VAT goes up 2.5% in 2023


Ghanaians will from 2023 pay more for items and services, as government has reviewed upwards the Value Added Tax (VAT) by 2.5 percent.

This was introduced by the Finance Minister, Ken Ofori-Atta on Thursday when he delivered the 2023 budget statement in Parliament.

The Finance Minister said this evaluate was a part of a seven-point agenda to enhance the economic system.

Mr. Ofori-Atta additional indicated that the rise is anticipated to yield GH¢2.70 billion, which will be used to increase funding for highway infrastructure growth.

“Mr. Speaker, the demand for roads has become the cry of many communities in the country. Unfortunately, with the current economic difficulties and the absence of a dedicated source of funding for road construction, it is difficult to meet these demands. In that regard, we are proposing the implementation of new revenue measures. The major one is an increase in the VAT rate by 2.5 percentage points.”

“This will be complemented by a major compliance programme to ensure that we derive the maximum yields from existing revenue handles,” he added.

The government can be set to cut back the speed of the controversial digital switch levy to 1 percent from 1.5 percent.

As a part of the evaluate of the e-levy act, the minister additionally said the every day threshold could be reviewed.



Source

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