Government has announced its decision to increase the Value Added Tax (VAT) by 2.5 percent.
This will move the tax policy from its current percentage of 12.5 per cent to 15.
Presenting the 2023 budget to Parliament on Thursday, the Finance Minister said the review is to directly support road construction projects and the digitization agenda.
According to Ken Ofori-Atta, the upward adjustment forms part of government’s initiative “to aggressively mobilize domestic revenue.”
Among others, the Minister said government will fast-track the implementation of the Unified Property Rate Platform programme in 2023.
He also revealed that the E-Levy Act will be reviewed.
“The headline rate from 1.5% will be reduced to one percent (1%) of the transaction value as well as the removal of the daily threshold,” he divulged.
Source: Ama Cromwell