Economics lecturer at the Wisconsin University, Dr Sam Worlanyo, has declared his support for the Finance Minister initiative to reform Ghana’s Value-Added Tax (VAT) system.
This reaction follows Dr. Forson’s announcement of plans to review the VAT system, aiming to foster a more favorable environment for small and medium-sized enterprises.
“It is worth noting that Ghana’s effective VAT rate, at 21.9%, possibly the highest in Africa, has contributed to compliance difficulties and operational inefficiencies. We are fully aware of these issues, and I assured our partners that a complete overhaul of the VAT system is actively under consideration,” Dr. Forson stated.
In an exclusive interview with UniversBusiness, Dr. Worlanyo highlighted the struggles Ghanaian businesses face, noting that excessive taxes are pushing many to the brink of collapse.
“Businesses are paying high taxes, meaning that they will use most of their profits to offset their debts and there will be no money to reinvest. As a result, most businesses are likely to collapse. There is a need for emergency action to be taken. The government must consider the survival of businesses, because without their survival, there will be no tax revenue,” he said.
Dr. Worlanyo also commended the Minister’s decision to review the VAT system and encouraged further action to support businesses.
“The Finance Minister has come to realize that the cost of doing business is excessively high. A review of the VAT system is a welcoming decision, we must examine the economic and social dynamics of all indicators. Discussing these issues is essential but we must translate our discussions into tangible actions. – let’s take proactive action now.”
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Story by: Yvonne Jatoe-Kale | univers.ug.edu.gh
Edited by: Cindy Selasi Humade
