Minister of State at the Finance Ministry, Abena Osei-Asare, has affirmed the government’s commitment to improving tax compliance and reducing inefficiencies within the country’s tax system.
Speaking at the 12th Annual International Tax Conference organized by the Chartered Institute of Taxation, she highlighted the government’s focus on enhancing the collection of Value Added Tax (VAT) and excise duties as key revenue measures.
Abena Osei-Asare emphasized that these efforts align with the Medium-Term Revenue Strategy outlined by the Finance Ministry.
Responding to reports about a potential reintroduction of the 15 percent VAT on electricity if disinflation trends persist, she stated, “We have a medium-term revenue strategy, and it is available on our website, clearly showing the government’s direction.
The main agenda is to raise the needed revenue, whether through improved VAT collection or excise duty collection, without necessarily increasing taxes.”
She stressed that the government’s approach will prioritize compliance and reducing inefficiencies in the tax system, believing that significant revenue can be generated without raising tax rates.
Meanwhile, Tax Analyst Francis Timore Boi, in an interview with Citi Business News, called for a consensus on the reintroduction of VAT on electricity. He suggested that instead of a 22% VAT, a lower rate such as 5%, 2%, or even 1% could be more acceptable, noting that other countries impose VAT on electricity at lower rates.
