Government is seeking to raise some GH¢750 million after the Value Added Tax Amendment bill which contains the E-VAT policy has been approved.
The tax policy, according to the government, is to broaden the basin of the existing law to incorporate electronic commerce and provide 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.
However, a report by the Finance Committee of Parliament stated that the e-vat policy addresses issues of inequalities and compliance in the payment of tax.
The finance minister during his presentation of the mid-year budget review noted that the Ghana Revenue Authority was concluding 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.
The finance minister also disclosed that the government has been forced to reduce its earlier projected target of GH¢1.6 billion in revenue from the e-levy to GH¢611 million after challenges that characterized its implementation.
However, the Value Added Tax has led to the upward adjustment of the expected revenue from the initial GH¢14,534,864,446 to GH¢15,402,925,770.
Source: ghanaweb
