Video: Will 3% VAT flat rate hike prices? Get blow-by-blow explanation

Video: Will 3% VAT flat rate hike prices? Get blow-by-blow explanation
Source: Ghana | Myjoyonline.com
Date: 02-08-2017 Time: 08:08:47:am

During the 2016 electioneering campaign, the NPP promised and subsequently implemented the 3% VAT Flat Rate Scheme aimed at improving tax collections.

The tax is only applicable to Manufacturers and Retailers, however, the new tax regime has been met with fierce opposition from some business owners in Ghana.

Manufacturers and importers have argued that the tax would result in them paying 3% more at every stage of value addition in production and possibly result in them paying a little over 20 percent at VAT to the state.

Related: Reintroduced 3% VAT Flat Rate to raise prices, threaten jobs - worried manufacturers

The Ghana Revenue Authority (GRA), however, discounts the claim by the tax will raise prices or hike the cost of doing business. 

The GRA has published numerous seculars in a bid to convince skeptics that the tax regime will rather be for the benefit of traders.

In the video below, Senior Revenue Officer at GRA, Alex Oppong-Opoku, and Chief Revenue Officer, Francis Ocran, use illustrations to provide a detailed explanation on current affairs programme, PM Express that aired Tuesday on the Joy News channel (Multi TV).

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