Government targets GH¢750 million from E-VAT
Despite the failure of the E-levy to meet even half of its target, the government has set a target of GH¢750 million
to be generated from the E-Vat following the passage of the VAT Amendment Bill.
The government is aiming to raise GH¢750 million from the E-Vat policy following the passage of the Value Added Tax Amendment bill.
It forms part of the measures to widen the scope of the existing laws to cover electronic commerce, provide for the electronic issuance of a tax invoice, upfront payment of Value Added Tax by an unregistered importer and the zero-rating of the supply of locally assembled vehicles.
A report of the Finance Committee of Parliament explains that the E-Vat policy addresses issues of inequalities and compliance in the payment of tax.
GRA has subsequently assured that it is finalising all relevant processes to facilitate the effective collection of VAT revenue including the proposed amendment of the Value Added Tax Act 870 to enable its electronic collection, effective October 1, 2022.
Currently, the government is reeling from the disastrous implementation of the electronic transactions levy. The Ministry of Finance has had to downgrade its projection of revenue expected from the E-levy to GH¢611 million from the earlier projected $1.6 billion.
For the Value Added Tax (VAT), the expected revenue was adjusted upwards from the initial GH¢14,534,864,446 to GH¢15,402,925,770.
