Abena Osei-Asare, Minister of State at the Finance Ministry, has affirmed the government’s dedication to improving tax compliance and addressing inefficiencies in the tax system.
During a media briefing at the 12th Annual International Tax Conference organized by the Chartered Institute of Taxation, Osei-Asare highlighted the government’s commitment to enhancing the collection of Value Added Tax (VAT) and excise duties, as part of broader revenue strategies.
She outlined that these efforts will align with the Medium-Term Revenue Strategy established by the Finance Ministry.
Responding to speculation about potentially reintroducing a 15 percent VAT on electricity, Osei-Asare emphasized that the government’s primary focus is on maximizing revenue collection through improved compliance and reducing inefficiencies, rather than increasing taxes.
“We have a Medium-Term Revenue Strategy available on our website, which clearly outlines our approach. The key objective is to secure necessary revenue, and we are committed to enhancing VAT and excise duty collections as part of this goal. However, our priority is to achieve this by improving compliance and reducing inefficiencies, rather than raising taxes,” she stated.
Additionally, Tax Analyst Francis Timore Boi, in a conversation with Citi Business News, suggested that the government should seek consensus on the VAT rate for electricity. He proposed that instead of a high rate of 22%, a lower rate such as 5%, 2%, or even 1% could be considered, drawing on practices from other countries with VAT on electricity.
