Tax Partner at PwC Ghana, Abeiku Gyan-Quansah has supported government’s commitment to review Ghana’s current Value Added Tax (VAT) system to encourage more businesses pay their taxes.
Describing the present VAT system as terrible, Mr. Gyan-Quansah urged the Finance Minister to capitalize on the current goodwill enjoyed by the government to make drastic changes in the VAT system to rake in the projected revenue.
According to him, the VAT system is so punitive such that it inadvertently encourage businesses to invade the tax, resulting in loss of revenue.
“The VAT system now, if you are not making profit of more than 6 percent you will become a tax criminal”, he said pointing out that a conducive VAT system will voluntarily encourage private businesses to comply.
He recommended that the time is right for the government to take bold steps as it embarks on the resetting agenda.
“The government is still in its first year. My recommendation is that whatever you want to do, do it now. For me, one of the main thing is government saying that, I will fix the VAT system because where we are, it is terrible”, he said on the maiden JoyBusiness Economic Dialogue series for 2025.
Mr. Gyan-Quansah added that government must sustain the confidence among Ghanaians by demonstrating that the public sector will cut down waste and optimize state resources.
He mentioned for example that the public must be part of the process to reduce expenditure as education intensifies on voluntary payment of taxes.
Stressing on the need to embark on fiscal reforms now, Mr. Gyan-Quansah predicted that it will be difficult for government to take some drastic decisions to turn the economy around if more time is wasted.
“In an election year, you will be threatened with votes and the right thing that ought to be done cannot be done. I believe that if the sustained education and the utilization of our funds and value addition continues, I expect things to change”, he said.
The dialogue was held on the theme “Fixing the Fundamentals: Is the 2025 Budget Ghana’s last shot at fiscal redemption?
The programme featured economist and Director of the Institute of Statistical Social and Economic Research (ISSER) Prof Peter Quartey, Dean, Faculty of Accounting and Finance, University of Professional Studies, Accra, Prof Isaac Boadi, Tax Partner at PwC, Abeiku Gyan-Quansah, CEO of the Ghana Association of Banks, John Awuah, and Economic Advisor, at the Ministry of Finance Dr Wisdom Dogbey.
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