The Government of Ghana has officially begun a comprehensive review of its Value Added Tax (VAT) system, with the goal of simplifying the regime and improving the country’s business environment.
The development was confirmed during a high-level meeting between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group. At the meeting, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, reaffirmed the government’s commitment to reforming the VAT framework in close collaboration with international partners.
Dr. Forson revealed that a Technical Assistance Mission from the International Monetary Fund (IMF) is currently in the country, working with local authorities to support the ongoing review process.
He further acknowledged that Ghana’s effective VAT rate, currently at 21.9%—one of the highest in Africa—has created compliance challenges and inefficiencies for businesses.
“We are fully aware of the challenges posed by the existing VAT structure,” Dr. Forson said. “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.”
The review is expected to enhance tax compliance, improve revenue mobilization, and create a more business-friendly tax environment.
The World Bank, for its part, expressed strong support for Ghana’s reform efforts and pledged continued collaboration with the government to help build a more efficient and equitable tax system.