Former Finance Minister Seth Terkper has cautioned Ghanaian businesses not to rejoice yet over the announcement of the no increase in the Value Added Tax (VAT) on Thursday 19th July, 2018.
Ken Ofori-Atta, the current Finance Minister announced in the 2018 midyear budget review in Parliament that the Value Added Tax will remain 12.5 per cent.
But the former Finance Minister believes the announcement is rather a VAT increase in disguise and businesses in Ghana should not herald the ruling NPP government yet.
He tweeted the following on his official twitter page:
It is a VAT increase in disguise. Businesses should not rejoice yet because they cannot claim Input Tax Credit/refunds on 5% of the current 17.5 percent rate. Already, the Flat Rate is denying some registered businesses refunds and Input Tax Credit
— Seth E Terkper (@SethTerkper) July 19, 2018
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