NDC leading economic voice, Isaac Adongo, says Ghanaians should brace for a bold overhaul of the country’s tax system as government works to introduce what he describes as a “better, wiser, faster” Value Added Tax (VAT) regime.

Speaking on PM Express on JoyNews on Wednesday, May 14, he responded to criticisms that the NDC government had failed to scrap the COVID-19 Health Recovery Levy, a campaign promise made ahead of the 2024 elections.

The Bank of Ghana Board Member dismissed the notion of failure, insisting the tax is undergoing a comprehensive policy review as part of a wider VAT reform.

“We haven’t failed,” Mr Adongo declared. “It is just that the time to do that, and the activities that we have lined up and the processes to arrive at a proper solution are not done yet.”

He revealed that government is working on a complete overhaul of the VAT system, incorporating the COVID levy into a redesigned framework that will raise the needed revenue while giving taxpayers relief.

“We are doing a holistic review of the Value Added Tax plus the COVID levy to arrive at a tax regime—or a VAT regime—that we think can help us rake in the needed revenue whilst at the same time giving Ghanaians the relief that we promised them,” he explained.

Host Evans Mensah pressed him further, asking if the NDC had overpromised in its manifesto, but the Bolga Central MP stood his ground.

“No. Putting it down doesn’t mean that we cannot do it,” he said. “I’m saying to you that the Value Added Tax reform is ongoing. We want to make it better, wiser and faster.”

He assured Ghanaians that the new VAT system, once finalised, will not only remove the unpopular COVID levy but also improve efficiency and equity in tax collection.

“By the end of the day, we will deliver to you a Value Added Tax regime that is devoid of COVID levy, but much more robust and capable of delivering our revenue objectives—and that is what we are working on.”