2023 Budget: Gov’t Proposes 2.5% VAT Increment

In the 2023 budget presentation, the Finance Minister suggested raising the Value Added Tax (VAT) by 2.5%.

Except for purchases made by wholesalers or retailers of goods, where a total flat rate of 3% is applied, the usual VAT rate is 12.5%.

The Finance Minister said to Parliament on November 24 that the rate rise proposal is one of the seven points on the agenda to revive the economy.

As a matter of fact, the seven points of the agenda include: aggressively mobilizing domestic revenue, streamlining and rationalizing expenditures, boosting local productive capacity, promoting and diversifying exports, protecting the poor and vulnerable, expanding digital and climate-responsive physical infrastructure; and implementing structural and public sector reforms.

Additionally, the finance minister, Mr. Ken Ofori-Atta declared that the government would carry out significant structural changes in the public sector.

Moreover, he said to Parliament that the government was committed to changing the narrative about the economy after acknowledging that there had been problems in the nation.

“The government is determined to change the negative narrative and rebuild for a better future,” he emphasized.

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