Government increases Tax from 12.5% to 15%

The Value Added Tax rate has been increased from 12.5% to 15%.

The 2.5% hike was announced by Finance Minister Ken Ofori-Atta when he presented the 2023 budget to parliament on Thursday, 24 November 2022.

According to him, the rate hike is expected to yield GH¢2.70 billion in revenue to fund road infrastructure development.

“Mr. Speaker, the demand for roads has become the cry of many communities in the country”.

“Unfortunately, with the current economic difficulties and the absence of a dedicated source of funding for road construction, it is difficult to meet these demands”.

“In that regard, we are proposing the implementation of new revenue measures”.

“The major one is an increase in the VAT rate by 2.5 percentage points.”

“This will be complemented by a major compliance programme to ensure that we derive the maximum yields from existing revenue handles,” he said.