The government is seeking to raise GH¢750 million in Ghana following the passage of the Value Added Tax Amendment bill, which introduces the E-Vat policy.
The tax measure broadens the scope of the existing laws to cover electronic commerce, provides for the electronic issuance of a tax invoice, upfront payment of Value Added Tax by an unregistered importer and the zero-rating of the supply of locally assembled vehicles.
A report of the Finance Committee of Parliament indicates that the e-vat policy addresses issues of inequalities and compliance in the payment of tax.
During the mid-year budget review, the Ghana Revenue Authority said it was finalising all relevant processes to facilitate the effective collection of VAT revenue including the proposed amendment of the Value Added Tax Act 870 to enable its electronic collection, effective October 1, 2022.
The government is currently reeling from the disastrous implementation of the electronic transfer levy.
The Ministry of Finance has had to downgrade its projection of revenue expected from the controversial e-levy to GH¢611 million from the earlier projected $1.6 billion.
For the Value Added Tax (VAT), the expected revenue was adjusted upwards from the initial GH¢14,534,864,446 to GH¢15,402,925,770. – Citibusinessnews.com