- August 3, 2022
- Posted by: Amos Ekow Coffie
- Categories: Banking and Finance, Economics
The government is aiming to raise ¢750 million, following the approval of the Value Added Tax Amendment bill, which implements the E-VAT policy.
The reviewed tax policy broadens the base of the existing law to incorporate electronic commerce, provides for the electronic issuance of a tax invoice, upfront payment of Value Added Tax by an unregistered importer and the zero-rating of the supply of locally assembled vehicles.
A report by the Finance Committee of Parliament indicates that the e-VAT policy addresses issues of inequalities and compliance in the payment of tax.
During the Mid-Year Budget Review, the GRA said it was finalising all relevant processes to facilitate the effective collection of VAT revenue including the proposed amendment of the Value Added Tax Act 870 to enable its electronic collection, effective October 1, 2022.
Meanwhile, the Ministry of Finance has been forced to reduce its earlier forecast of $1.6 billion in revenue from the controversial e-levy to GH¢611 million after experiencing challenges in its implementation.
But for the Value Added Tax (VAT), the expected revenue was adjusted upwards from the initial GH¢14,534,864,446 to GH¢15,402,925,770.