Abena Osei-Asare, the Minister of State at the Finance Ministry, has affirmed the government’s commitment to improving tax compliance and addressing inefficiencies within the country’s tax system.
During an interaction with the media at the 12th Annual International Tax Conference organized by the Chartered Institute of Taxation, Osei-Asare highlighted the government’s focus on enhancing the collection of Value Added Tax (VAT) and excise duties, along with other revenue-generating measures.
She explained that the government’s efforts align with the Medium-Term Revenue Strategy, which has been outlined by the Finance Ministry and is publicly available.
Responding to reports suggesting that the government might reintroduce a 15 percent VAT on electricity if disinflation trends continue, Osei-Asare clarified the government’s approach.
“We have a medium-term revenue strategy, and it is clearly outlined on our website, so you can see the direction the government is heading. The most important question is how do we raise the needed revenue? Whether it’s from VAT, excise duties, or other sources, our main focus should be on how to increase revenue. If improving VAT collection will help us raise more revenue, we will pursue that.
“If enhancing excise duty collections will help us generate more revenue, we will also focus on that, without necessarily increasing those taxes. Our primary focus is on compliance and reducing inefficiencies because we believe there is significant potential to increase revenue without raising taxes,” she explained.
In addition, Tax Analyst Francis Timore Boi, in an interview with Citi Business News, urged the government to seek consensus on the potential reintroduction of VAT on electricity.
“We have other countries that pay VAT on electricity and power, but it may not be as high as 22%. Can we agree that instead of doing 22%, let’s do 5%, 2%, or 1%?” he suggested.
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