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13 July 2017

3% VAT key to resuscitating economy – Akufo-Addo – Starr Fm

President Akufo-Addo has assured business owners opposed to the 3 percent VAT flat rate policy that the benefits of the policy will be realised in the near future.

The policy, he argued, will be key to getting the ailing economy back on track.

The Ghana Revenue Authority (GRA) on July 4, 2017 announced commencement of the application of the 3 percent VAT Flat Rate to replace the previous 17.5% Input-Output VAT computation approach.

The new announcement, according to the GRA will make tax filing less cumbersome compared to the previous VAT regime.

Nonetheless, its implementation has been met with extreme opposition. The levy was abolished by the NDC government, but has been reintroduced by the current government.

The AGI, Beverage Manufacturers, Wholesalers and other groups petitioned a number of powerful institutions on the levy, claiming it amounts to multiple taxation and demanding a suspension.

The Minority in Parliament has labelled the policy as excruciatingly insensitive. The government, however, argued otherwise with President Akufo-Addo contending that the reintroduction of the abolished policy is part of the government’s wider policies to resuscitate the dying Ghanaian economy.

Speaking at the launch of the National Entrepreneurship and Innovation Plan, Thursday July 13, 2017, he said the objectives of the reintroduction of the 3percent VAT flat rate policy will be “appreciated and embraced.”

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