2023 Budget: Government proposes 2.5 per cent VAT increase; 1 per cent for E-levy

Accra-Ghana, Nov. 24, GNA – Mr Ken Ofori- Atta, Minister of Finance and Economic Planning, has proposed a 2.5 per cent increase in the Value Added Tax (VAT) to support roads and digitization agenda of government.
He said the Government would, “Review the E-levy Act and specifically reduce the headline rate from 1.5 per cent to 1 per cent of the transaction value as well as the removal of the daily threshold.”
Mr Ken Ofori-Atta said this at the presentation of the 2023 Budget Statement and Economic Policy on the floor of Parliament on Thursday 24th November.
He said that as part of an aggressive domestic revenue Mobilisation, the Government would fast-track the implementation of the Unified Property Rate Platform Programme in 2023.
The Government had also proposed several measures to boost local production capacity, including supporting large-scale agriculture and agribusiness interventions through Development Bank Ghana and Agriculture Development Bank.
The Minister said public sector institutions that relied on imports either for inputs or consumption would be splashed by 50 per cent, working with Ghana Audit Service and the Internal Audit Agency to ensure compliance.
In export promotion, Mr Ofori-Atta said the country’s productive capacity would be expanded in agriculture to encourage the consumption of locally produced rice, vegetable oil, poultry and fruit juice, amongst others.