The Ghana Revenue Authority (GRA) has suspended the implementation of the 17.5 per cent Value Added Tax (VAT) on non-core financial services until further notice.
This, they say, is to allow for more education of the general public and adequate lead time for the banks to achieve the level of preparedness that will ensure a hitch-free implementation.
Industry, the Private Enterprise Federation (PEF) and unionized workers have been pressuring government to withdraw the 17.5 per cent VAT.
According to them, the move will further cripple their businesses which are already reeling under the pressures of power interruption and unfavourable business environment.
DEFERMENT OF IMPLEMENTATION OF VAT ON FINANCIAL SERVICES
After a careful evaluation of progress of the ongoing publicity and education programme on VAT on financial services, and taking cognizance of the request by sections of the banking community for extension of the period of preparation for implementation of the tax, the commencement date of 1st July, 2014 originally set, has been postponed until further notice.
The decision, taken in consultation with the appropriate stakeholders is to allow for more education of the general public and adequate lead time for the banks to achieve the level of preparedness that will ensure a hitch-free implementation.
Credit: citifmonline