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The Ghana National Chamber of Commerce and Industry has declared that the country’s complex VAT system is no longer sustainable, urging government to adopt a simpler regime that can reduce consumer prices and ease compliance stress for businesses.
Speaking in Accra, the Chamber said businesses have been overwhelmed by multi layered VAT structures that increase operating costs and slow down production cycles. It noted that SMEs, which make up a significant share of Ghana’s economy, face the highest burden because they lack the staff and systems needed to navigate difficult tax procedures.
According to the Chamber, the current framework complicates bookkeeping, delays filings and often forces firms to spend more on consultants than on operational improvements. It added that high compliance costs eventually feed into the final price of goods, leaving consumers to bear the impact.
The Chamber argued that a simplified VAT system could improve tax discipline, restore clarity for both buyers and sellers and give firms room to expand. It noted that streamlined processes would reduce errors, cut administrative frictions and provide government with more reliable revenue data.
Analysts say the call for reform aligns with global trends where governments are replacing complex tax models with lighter systems to encourage entrepreneurship and attract investment. They caution, however, that any change must be phased to avoid revenue shocks.
Business groups have long argued that Ghana’s VAT structure creates confusion and limits competitiveness. They say persistent interpretations, exemptions and rate variations make it difficult to project cash flow or plan long term investments.
Officials from the Ministry of Finance have not yet responded to the Chamber’s latest position, but sources familiar with ongoing policy discussions say the government is reviewing multiple tax reform proposals.
The Chamber believes that meaningful reform will not only help businesses survive rising costs but also support national growth goals by boosting production, trade and consumer spending.
Speaking in Accra, the Chamber said businesses have been overwhelmed by multi layered VAT structures that increase operating costs and slow down production cycles. It noted that SMEs, which make up a significant share of Ghana’s economy, face the highest burden because they lack the staff and systems needed to navigate difficult tax procedures.
According to the Chamber, the current framework complicates bookkeeping, delays filings and often forces firms to spend more on consultants than on operational improvements. It added that high compliance costs eventually feed into the final price of goods, leaving consumers to bear the impact.
The Chamber argued that a simplified VAT system could improve tax discipline, restore clarity for both buyers and sellers and give firms room to expand. It noted that streamlined processes would reduce errors, cut administrative frictions and provide government with more reliable revenue data.
Analysts say the call for reform aligns with global trends where governments are replacing complex tax models with lighter systems to encourage entrepreneurship and attract investment. They caution, however, that any change must be phased to avoid revenue shocks.
Business groups have long argued that Ghana’s VAT structure creates confusion and limits competitiveness. They say persistent interpretations, exemptions and rate variations make it difficult to project cash flow or plan long term investments.
Officials from the Ministry of Finance have not yet responded to the Chamber’s latest position, but sources familiar with ongoing policy discussions say the government is reviewing multiple tax reform proposals.
The Chamber believes that meaningful reform will not only help businesses survive rising costs but also support national growth goals by boosting production, trade and consumer spending.