Dr. Cassiel Ato Forson, Ghana’s Finance Minister, has reaffirmed the government’s commitment to reforming the country’s Value Added Tax (VAT) system, promising a comprehensive overhaul by November 2025. Speaking during a recent meeting with Mr. Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group, Dr. Forson emphasized the need for reforms to address the significant challenges faced by businesses under the current VAT structure.
Dr. Forson explained that Ghana’s VAT rate, at 21.9%, which is possibly the highest in Africa, has led to compliance difficulties and operational inefficiencies for businesses. He reassured partners, including the World Bank, that a complete review of the VAT process is underway, with the support of an IMF Technical Assistance Mission currently assisting the government in the review.
“The reform is critical,” Dr. Forson noted. “We are aware of the challenges, and we are actively working on a solution that will alleviate the burden on businesses while ensuring a more efficient system.”
The government is aiming to implement the necessary changes in time for the next national budget, signaling a major step toward improving the country’s fiscal policy and fostering a more conducive environment for businesses.
