Government begins overhaul of VAT system to boost business climate, tax compliance
The reform initiative was highlighted during a high-level engagement between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group.
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The government of Ghana has officially embarked on a comprehensive review of its Value Added Tax (VAT) system, aiming to streamline the structure and create a more business-friendly environment nationwide.
The reform initiative was highlighted during a high-level engagement between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group.
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, reaffirmed the government’s commitment to overhauling the VAT framework in collaboration with key international partners. He disclosed that a Technical Assistance Mission from the International Monetary Fund (IMF) is currently in the country, offering expert support to local authorities throughout the review process.
Dr. Forson acknowledged that the current effective VAT rate—standing at 21.9% and among the highest in Africa—poses significant challenges for businesses in terms of compliance and operational efficiency.
The VAT reform is expected to enhance tax compliance, strengthen revenue generation, and reduce the administrative burden on businesses.
The World Bank has welcomed Ghana’s efforts and pledged continued collaboration to help develop a more efficient and equitable tax system.
