Government begins review of VAT flat rate

• Government has begun reviewing VAT flat rate

• The 4% VAT flat rate scheme applies to small businesses

• The rate also applies to firms that are exempted from paying the full 18.5% VAT/NHIL tax

Government has begun reviewing the Value-Added Tax (VAT) flat rate scheme to deal with concerns of computation and scope.

The 4% VAT flat rate scheme applies to small businesses and firms that are exempted from paying the full 18.5% VAT/NHIL tax.

However, there are growing concerns by some businesses over the rate.

Speaking in an interview with Accra-based JoyNews, monitored by GhanaWeb, the deputy Finance Minister, Abena Osei-Asare, said government has made a lot of a lot of progress in dealing with the issue.

“We’ve gone round and these are some of the concerns that stakeholders are raising and it is something that we are looking at and we believe that in the short to medium term, we will have something in that regard,” she said.

She further stated that the process will take a while but stakeholders are being engaged.

“Before you do these things, you need to engage your stakeholders, we have met the various stakeholders and it is being accessed and so I believe that you will soon hear from Government on how tax is being made easy and accessible for people to be able to pay,” she added.