Country Senior Partner at PWC Ghana, Vish Ashiagbor, has stressed the need for a careful and strategic approach to overhauling Ghana’s VAT system.
Speaking on Joy News’ PM Express Business Edition on Thursday, March 13, he acknowledged the necessity of reforms but cautioned against rushing the process without thorough assessment.
“I think the tax measures have been carefully thought through and are being carefully assessed. That is why you see, for example, the changes to the VAT regime have not been made immediately,” Mr Ashiagbor explained.
He noted that while there is consensus on the need for VAT reforms, executing them hastily could lead to unintended consequences.
“Now, everybody agrees that the VAT system needs to be overhauled, but that needs to be carefully assessed because, as we’ve already said, it’s a delicate balance.”
Vish Ashiagbor acknowledged the concerns raised by business leaders, including the CEO of the Ghana Chamber of Commerce and Industry, regarding the lack of immediate relief.
[embedded content]However, he defended the government’s approach, stressing that the process must be deliberate and well-structured rather than a knee-jerk reaction.
“I take the point that the CEO of the Chamber of Commerce made—that they had hoped there would have been some immediate relief from that front. I don’t think it’s a trial-and-error thing. I think it’s been carefully thought through.”
He also pointed out that while the projected increases in revenue from tax reforms are ambitious, their success hinges on proper execution.
“The increases that have been projected will take some doing, but if I read the narrative and the initiatives that they’ve put forward, I think it’s possible—by suppression of how effective we can get the implementation to run. On paper, it looks good, but implementation is always the key.”
Mr Ashiagbor’s comments reflect a broader concern about ensuring that tax reforms, particularly VAT adjustments, are well-structured to avoid disruptions to businesses and the economy.
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