Ken Ofori Atta okays implementation of 3% VAT Flat Rate Scheme

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The Minister of Finance, Ken Ofori-Atta, says there is no illegality in the implementation of the 3% VAT Flat Rate Scheme.

He explained that the implementation is within the ambit of the law and the Ministry will continue to engage stakeholders to further educate them to ensure total buy-in from the general public.

He stated that the flat rate is a simplified tax arrangement that ought not to lead to any increment in prices of goods.

Speaking to the Parliamentary Press Corps in Parliament after a meeting with the Finance Committee, Mr. Ofori-Atta said the 3% VAT is a much lower rate that will lessen the cascading effects of the 17.5% on traders.

According to the Finance Minister, the introduction of the 3% VAT is good for the country, adding that it eliminates tax evasion.

The Minority Caucus addressed the Media shortly after the meeting.

The Ranking Member on the Finance Committee and Former Deputy Finance Minister, Cassiel Ato Forson said the Minority will go to court to halt the implementation of the 3% VAT as it is an illegality.

He said the VAT is not in-sync with the spirit of the Value Added Tax Act.

The President of the Ghana Union of Traders Association, Dr. Barima Ofori Ameyaw said the 3% VAT is not new and the traders are happy that it has been re-introduced.

He said the new tax described as consumptive tax will not lead to increase in prices of goods on the market.

Meeting on the implementation of the 3% VAT was attended by Representatives of the Association of Ghana Industries (AGI), Ghana Union of Traders Association, the Ministry of Finance and Members of the Finance Committee of Parliament.

Source: myxyzonline.com

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