2023 Budget hikes VAT as country seeks debt restructuring with IMF
The West African country of Ghana has announced raise in Value Added Tax standard rate from 12.5% to 15%. This reverses a cut put into place in 2018. The revenues would be used for a road infrastructure upgrade and the digitalisation of the government, and announced in the 2023 Budget
The tax hike comes as the country is in the midst of struggling to meet debt repayments, and is seeking a new plan with the International Monetary Fund. Ghanaian currency, the cedi, has lost 50% of its value this year.
VAT is currently 12.5% in Ghana. In addition, there is a combined 5% Health and Education Levy (National Health Insurance Levy (NHIL) Education Trust Fund Levy (GETFL) on most taxable supplies of goods and services, including imported goods and services.
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