adverts
Parliament has approved the Value Added Tax (VAT) Bill, 2025, paving the way for sweeping reforms to Ghana’s VAT regime aimed at enhancing clarity, consistency, and legal certainty within the tax system.
The newly approved bill replaces the current flat-rate VAT structure with a single, unified framework designed to streamline the country’s tax administration. A key feature of the new regime is the increase in the VAT registration threshold, a measure expected to exempt thousands of micro and small businesses from compulsory VAT registration and reporting.
The government argues that the reform will promote efficiency and reduce the administrative burden on businesses. Presenting the bill, Deputy Minister for Finance Thomas Nyarko Ampem stressed that the overhaul is intended to simplify compliance and make the VAT system more transparent. According to him, the new structure will not introduce additional tax burdens on businesses or the consuming public.
adverts
However, the minority remains unconvinced.
During the debate on the floor, Minority Leader Alexander Afenyo-Markin cautioned that the revised framework may inadvertently increase the tax load on businesses, with the effect ultimately trickling down to ordinary Ghanaians. He warned that the bill, though presented as a reform, could create hidden costs that would deepen the financial strain on citizens already grappling with economic challenges.
Afenyo-Markin argued that the transition from the flat-rate system may lead to higher effective tax payments for some categories of traders and service providers.
The Deputy Finance Minister rejected these concerns, insisting that the bill is crafted to reduce complexity rather than create new burdens.
He reiterated the government’s commitment to protecting small businesses while ensuring a modernised tax regime aligned with international best practices.
Click the link Puretvonline.com | WhatsApp Channel to join the WhatsApp channel
GOT A STORY?
Contact/WhatsApp: +233243201960 or manuelnkansah33@gmail.com
