The Minister of Finance Ken Ofori-Atta is expected to face parliament today, Thursday July 6, 2017 to answer questions over the controversial 3 percent VAT Flat Rate.
The Ghana Revenue Authority (GRA) on July 4, 2017 announced commencement of the application of the 3 percent VAT Flat Rate to replace the previous 17.5% Input-Output VAT computation approach.
The new announcement, according to the GRA will make tax filing less cumbersome compared to the previous VAT regime.
Nonetheless its implementation has been met with extreme opposition. The levy was abolished by the NDC government, but has been reintroduced by the current government.
The AGI, Beverage Manufacturers, Wholesalers and other groups petitioned a number of powerful institutions on the levy, claiming it amounts to multiple taxation and demanding a suspension.
The Minority in Parliament has accused government of illegal conduct for including Importers in the levy, when the Law excludes them.
As a result, the Finance Committee of Parliament has summoned the Finance Minister, Ofori-Atta before the House to expatiate more on the declared 3 percent VAT rate.
Commenting on the matter, the Ranking Member of the Finance Committee Ato Forson said “we will bring the Minister before the House through an urgent question or through a motion to come and answer…that we have passed something and he is doing something different.”
He said the summoning of the finance minister is necessitated by a petition before the finance committee regarding the 3 percent VAT rate.
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