Presidential Advisor on the Economy, Seth Terkper, has reaffirmed the importance of Value Added Tax (VAT) as one of Ghana’s four most stable tax sources, alongside income tax, sales/service taxes, and consumption/expenditure taxes.
Presidential Advisor on the Economy, Seth Terkper, has reaffirmed the importance of Value Added Tax (VAT) as one of Ghana’s four most stable tax sources, alongside income tax, sales/service taxes, and consumption/expenditure taxes.
“I would hope that we’ll keep it stable. The beauty of VAT is that it is one of four stable tax sources for the country. Anything else is minor,” he stated.
Despite its importance, Mr Terkper noted that VAT has not significantly increased Ghana’s tax-to-GDP ratio, with its peak recorded in 2015, following a major VAT review in 2013.
That review introduced modified taxes for small businesses, replacing presumptive taxes and thresholds to simplify compliance for smaller entities.
He also called for a review of income tax thresholds, urging Parliament to be involved in an annual indexation process to prevent “pocket creep”—a situation where inflation pushes taxpayers into higher brackets, effectively reducing their disposable income.
