Government is set to go ahead with the implementation of the 3% VAT flat Rate from this Saturday, despite intensified appeals by Business Associations for the policy to be scrapped.
The 3% VAT flat rate will see manufacturers and wholesalers charge the tax component on their wares and subsequently account for the tax payment.
But the businesses argue that the decision which has widened the scope, will also increase prices and inconvenience consumers.
In an interview with Citi Business News shortly after meeting the Vice President Dr. Bawumia, the Executive Secretary of the Importers and Exporters Association of Ghana, Samson Asaaki Awingobit was optimistic of a positive outcome subsequently.
“The Vice President made it clear to us that he is going to meet the Ministry of Finance and the Ghana Revenue Authority (GRA). We will wait to hear from government and we will request that after that meeting, probably, if they can communicate with us to give us update,” he said.
He maintained that it is important for government to give a clear indication on its next move to give some assurances to stakeholders.
“As we speak now, whether it is going to be total cancellation or they are going to go back to parliament to ask for amendment of the act so that it be reverted, we are waiting patiently and of course, there should be a threshold and that is where we are looking at than to capture everybody in the net,” he said.
Speaking on the same issue, the Executive Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey expressed confidence in the Vice President’s assurance.
“Actually when the bill was introduced, it was meant for the informal sector but unfortunately the GRA sought to broaden it to include every importer and business dealer from the manufacturing point of view. This, we disagreed with because the development will only increase our prices between 6-7%,” he said.
“The Vice President himself understood the issue better and as such we know government is not going to allow such implementation to fly. They need to take a relook at it,” he noted.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana