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Ghanaians will pay more for goods and services effective January 2023 following an upward review of the Value Added Tax (VAT) announced by the Finance Minister, Ken Ofori Atta, on Thursday.
Reading the 2023 budget to Parliament, Mr Ken Ofori Atta indicated that the government increased the VAT by 2.5 per cent which brings the tax to a total of 15 per cent.
According to him, the move is to help the government generate revenue to aid the construction of roads and other projects the government has in the pipeline.
He said, “to aggressively mobilize domestic revenue, we will among other things increase VAT rate by 2.5% to directly support our roads and digitalisation agenda, fastrack the implementation of the property rate programme in 2023 review the E-levy and more especially reduce the headline rate from 1.5 to 1% of the transaction value, as well as the removal of the daily threshold.”
It is part of a seven-point agenda the Akufo-Addo-led administration has put in place to restore the macro-economic stability and accelerate Ghana’s economic transformation.
The seven-point agenda include aggressively mobilising domestic revenue, streamlining and rationalising expenditure, boosting local production capacity, and promoting and diversifying exports.
The rest are protecting the poor and vulnerable, expanding digital and climate-responsible fiscal infrastructure, and implementing structural and public sector reforms.
Meanwhile, some Ghanaians have taken to Twitter to express their sentiments about the announcement.
You’re going to pay more for fuel, goods, and services because gov’t has increased VAT by 2.5%.
E-Levy now covers every transaction you make, and public-sector employment has been frozen.
They decided to read the budget today so that Ghanaians won't pay attention#Budget2023
— Yayra Koku (@YayraKoku) November 24, 2022
You’re going to pay more for fuel, goods n services cos gov’t has increased VAT by 2.5%.
E-Levy now covers every transaction u make n public-sector employment has been frozen.
They decided to read the budget today so that we won't pay attention cos of the Ghana match.
😬☹️🤐🤔— 👽👑Kwamena Ansah Whyte ™👷🏿♂️👨🏿🔧 (@AnsahQwamena) November 24, 2022
Decrease e-levy by 0.5% and increase VAT by 2.5%
Wicked government!
— Nana Kwesi Eshun (@_NanaCwesi_) November 24, 2022
increase vat by 2.5%?
oh God, make a way out of this country for me, i beg.
— Chi⁷ (@eberechiiii) November 24, 2022
