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According to Ofori-Atta, a company reported 342,000 monthly sales instead of 1582,000 and paid 40,000 dollars in VAT rather than 19,800,000

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In response to complaints from businesspeople and the general public that the recent enactment of three additional taxes is burdening the already overtaxed Ghanaian, Finance Minister Ken Ofori-Atta stated: “I believe most of us [Ghanaians] do not pay taxes.”

Speaking outside the IMF’s Spring Meeting in Washington, DC, Mr. Ofori-Atta asserted that Ghana’s revenue-to-GDP ratio, which is currently 13% rather than 20%, is evidence of his assertion that “a third of taxes that should be paid are not being paid.”

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He cited one instance where, before to the implementation of the e-VAT, a company reported monthly sales of 342,000 and paid VAT of 40,000 as an example. However, “after the system was implemented, sales were 158 million per month and VAT was 19.8 million.”

The finance minister said, “So, you start to understand some of these folks that GRA is over-auditing them plainly aren’t doing what they’re meant to do.

He claimed that the new taxes are currently essential.

“So, once you start to put all of these proper taxes in place, you definitely then get into a period where you actually, as we came in 2016 – you remember in 2017 we cancelled a lot of taxes – as we begin to build up, then certain taxes may not be necessary, but we need the revenue now to be able to move in that direction,” the author said.

He said: “I believe that the digitalisation will help, and, as we move toward, 18 to 20% revenue-to-GDP [ratio], it will ease”, because we, as a market-oriented philosophy for our government, will always look for ways in which we will make our businesses pay as little taxes as possible to ensure that employment and expansion comes into place, but there are periods in which we need to generate appropriate taxes so that we can fund the budget”.

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