Parliament has asked the Finance Ministry and the Ghana Revenue Authority (GRA) to halt the suspension of the implementation of the Amended 3% VAT for local businesses.
It follows an acceptance by the House for the two entities to meet over the implementation of the amended tax.
The 1st Deputy Speaker, Joseph Osei Wusu who passed the motion in Parliament on Thursday urged the leadership of the Finance Committee to discuss the way forward with the relevant institutions.
“The motion has been moved, seconded and debated…I direct that the leadership of the house working in consultation with the leadership of the Finance Committee engage the Ghana Revenue Authority and guide them as to the import of the law that has been passed and what steps they can take if they need time for implementation,” Mr. Osei Wusu said on the floor of Parliament on Thursday.
The GRA has in recent media advertisements, announced that the implementation of the 3% VAT Flat rate be deferred to July 2017.
The directive came on the back of concerns by businesses regarding the calculation of the VAT.
Some manufacturers have cited their apparent inability to reclaim the differences upon calculating 17.5% VAT on their operations.
This they say warranted clarity from the GRA and the Finance Ministry.
Parliament in April 2017 amended the VAT Act to reflect the tax cuts announced by Finance Minister, Ken Ofori Atta in this year’s budget.
The 3% VAT Flat Rate scheme was among the tax cuts after the numerous complaints by local businesses such as the Ghana Union of Traders Association (GUTA).
The Minority Leader in Parliament, Haruna Iddrisu who moved the motion in Parliament indicated that the suspension by the GRA was a disincentive to businesses.
He argued that the development created an uncertain situation which he says flouts accepted principles in taxation.
By: Pius Amihere Eduku/Duke Mensah Opoku/citibusinessnews.com/Ghana