Minister of Finance Dr Ato Forson meets World Bank Group
Minister of Finance Dr Cassiel Ato Forson has announced that the government is set to review its Value Added Tax (VAT) system as part of broader fiscal reforms aimed at easing the burden on businesses and improving compliance.
The announcement was made during a high-level engagement between Dr Forson and the World Bank Group, where the Finance Ministry briefed Wencai Zhang, Managing Director and Chief Administrative Officer of the Bank, on Ghana’s commitment to reforming its tax framework.
According to Dr Forson, Ghana’s effective VAT rate currently stands at 21.9%, which may be the highest on the African continent.
The rate has long been criticised for complicating tax compliance and increasing operational costs for local businesses.
To address these concerns, an International Monetary Fund (IMF) Technical Assistance Mission is currently in Ghana, working alongside local authorities to guide the reform process.
The objective is to streamline the VAT system, make it more business-friendly, and enhance economic efficiency.
In a post shared on his X (formerly Twitter) page on April 14, 2025, and sighted by GhanaWeb Business, Dr Forson noted that a complete overhaul of the VAT system is under active consideration and is expected to be finalised ahead of the next national budget.
“We are fully aware of the challenges posed by the existing VAT structure. That is why we are undertaking a complete overhaul of the system. I can assure our partners and the Ghanaian public that this reform process will be concluded before the main budget is presented in November,” he stated.
During my recent meeting with Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group, I provided an update on Ghana’s efforts to comprehensively review our Value Added Tax (VAT) regime.
This reform is critical, as the current structure poses… pic.twitter.com/2pskqv8wI0
— Cassiel Ato Forson(PhD) (@Cassielforson) April 14, 2025
SP/MA
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