The Finance Committee of Parliament has by a majority decision recommended the adoption and approval of the Value Added Tax (Amendment) Bill, 2023.
The Committee’s report presented to the House on Friday, 22 December 2023, noted that the minority members despite supporting the zero-rating of the VAT on materials for the production of sanitary towels, dissented on recommending the bill for approval on the basis the impact some aspects of the bill will have on the cost of doing business.
“They submitted that they were unable to support the Bill because of those other revenue measures would directly worsen the economic circumstances of Ghanaian businesses in the country.
“All members on the Minority side accordingly declined to recommend to the House to pass the Bill into law,” the report stated.
Despite the position of the minority, the report noted that the Bill has been recommended for passage through a majority vote as members of the majority on the committee were convinced that the proposed amendments to the bill will overall enhance revenue generation.
The Government of Ghana as part of efforts to expand the tax net and to boost domestic production of some selected items, decided to amend the existing Value Added Tax (VAT) regime to extend the existing concessions of VAT rate at zero on locally manufactured African Prints textiles, locally produced sanitary towels and locally assembled vehicles for two years.
The amendment aims at encouraging the use of electric vehicles as substitutes for fossil fuel and propose the waiver of import duty on the importation of electric vehicles for commercial transportation to promote green economy through the use of clean energy sources.
The Value Added Tax (Amendment) Bill, 2023 was presented to Parliament by the Deputy Minister for Finance Mrs. Abena Osei Asare on behalf of the Minister for Finance, and read for the first time on Friday, November 24, 2023 in accordance with Article 174(1) of the 1992 Constitution.
The Bill was subsequently referred to the Finance Committee for consideration and report in accordance with Order 169 of the Standing Orders of the House.
Read the Committee’s full report below:
Source: www.ghanaweb.com
