Prime News Ghana

Ken Ofori Atta to appear before Finance Committee of Parliament over 3% VAT today

By Clement Edward Kumsah
ken_ofori_atta
Finance Minister Ken Ofori Atta
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Finance Minister Ken Ofori-Atta will today July 6 appear before Parliament to address some concerns on the recent 3% VAT introduced by the New Patriotic Party (NPP) government.

The 3% VAT came into effect on July 1, 2017, following the passage of Act 948 to amend the Value Added Tax Act, 2013 (Act 870).

A ranking member of the Finance Committee in Parliament  Cassiel Ato Forson is vehemently pushing for the tax to be withdrawn.

“All of a sudden the VAT burden, instead of it being reduced, has become an increase. This is because the value-added flat rate only relates to retailers. For some reason, the government decided to include wholesalers,” he said on Wednesday, July 5.

He emphasized that all around the world,  the practice has been to give only retailers 3 percent because the input-output turns out to become approximately 2.9 percent, which is equivalent to 3 percent”.

Ato Forson added that If the 3% VAT is extended to wholesalers it clearly shows that it an imposition of an additional tax.

The former Finance Minister believes President Nana Akufo-Addo’s government “tricked Ghanaians into introducing additional tax”

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