He suggested that the government could improve the scheme by reinstating the repealed VAT Act 810 of 2010, which mandated that both wholesalers and retailers falling within a defined turnover threshold be placed on a flat rate.

Mr. Gyan-Quansah made the suggestion at a stakeholder engagement organised in Accra by the Ghana Integrity Initiative, Transparency International’s local chapter, aimed at fostering national dialogue on the challenges within the VAT system.

The event was held under the theme, “Value Added Tax (VAT) Reforms in Ghana: Addressing Structural, Legal and Policy Gaps.”
Mr. Gyan-Quansah said many people, particularly in the market, had come to value the flat rate system.

He added that reinstating such provisions would facilitate easy computation and improve compliance and monitoring across the economy.

In March, Finance Minister Dr. Cassiel Ato Forson announced during the budget reading the government’s intention to abolish the VAT flat rate and raise the registration threshold, exempting micro and small businesses from VAT collection.

The measures formed part of broader reforms aimed at addressing inefficiencies and easing the tax burden on households and enterprises.

Mr. Gyan-Quansah noted that ensuring equity and efficiency in tax administration remained complex, stressing the need for the government to clarify the objectives underpinning its reform agenda.

Mr. Daniel Nuer, Head of the Tax Policy Unit at the Ministry of Finance, revealed that the government was working to consolidate fragmented tax legislation into a unified law to guide administration.

Mr. Kingsley Konadu, Assistant Commissioner of Tax Audit Quality Assurance, recommended raising the VAT threshold beyond GHS200,000, citing data indicating that approximately 97 percent of VAT revenue is contributed by businesses with turnover exceeding GHS1 million.