Tax Companion at PwC Ghana, Abeiku Gyan-Quansah has supported authorities’s dedication to evaluate Ghana’s present Worth Added Tax (VAT) system to encourage extra companies pay their taxes.
Describing the current VAT system as horrible, Mr. Gyan-Quansah urged the Finance Minister to capitalize on the present goodwill loved by the federal government to make drastic adjustments within the VAT system to rake within the projected income.
Based on him, the VAT system is so punitive such that it inadvertently encourage companies to invade the tax, leading to lack of income.
“The VAT system now, in case you are not making revenue of greater than 6 % you’ll change into a tax legal”, he stated stating {that a} conducive VAT system will voluntarily encourage non-public companies to conform.
He advisable that the time is correct for the federal government to take daring steps because it embarks on the resetting agenda.
“The federal government remains to be in its first 12 months. My suggestion is that no matter you wish to do, do it now. For me, one of many primary factor is authorities saying that, I’ll repair the VAT system as a result of the place we’re, it’s horrible”, he stated on the maiden JoyBusiness Financial Dialogue collection for 2025.
Mr. Gyan-Quansah added that authorities should maintain the arrogance amongst Ghanaians by demonstrating that the general public sector will reduce down waste and optimize state assets.
He talked about for instance that the general public should be a part of the method to cut back expenditure as schooling intensifies on voluntary cost of taxes.
Stressing on the necessity to embark on fiscal reforms now, Mr. Gyan-Quansah predicted that it will likely be troublesome for presidency to take some drastic choices to show the financial system round if extra time is wasted.
“In an election 12 months, you can be threatened with votes and the fitting factor that should be accomplished can’t be accomplished. I imagine that if the sustained schooling and the utilization of our funds and worth addition continues, I count on issues to alter”, he stated.
The dialogue was held on the theme “Fixing the Fundamentals: Is the 2025 Price range Ghana’s final shot at fiscal redemption?
The programme featured economist and Director of the Institute of Statistical Social and Financial Analysis (ISSER) Prof Peter Quartey, Dean, School of Accounting and Finance, College of Skilled Research, Accra, Prof Isaac Boadi, Tax Companion at PwC, Abeiku Gyan-Quansah, CEO of the Ghana Affiliation of Banks, John Awuah, and Financial Advisor, on the Ministry of Finance Dr Knowledge Dogbey.
DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially signify the views or coverage of Multimedia Group Restricted.
Source link
