The changes have effectively lowered the VAT burden on goods to 20 percent
Some shoppers in Accra are beginning to see modest price reductions in goods as businesses adjust to recent reforms in the Value Added Tax (VAT) system, following the government’s removal of the COVID-19 Levy and the three per cent flat rate.
The changes have effectively lowered the VAT burden on goods to 20 percent.
Checks by GhanaWeb at several retail outlets in Accra selling consumable goods show that the abolished levies are no longer being charged, with prices of some items already reflecting the revised tax structure.
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Most retailers say the new VAT regime has been fully integrated into their billing systems, with point-of-sale receipts now indicating lower charges, compared to previous weeks.
Some consumers have welcomed the changes, noting that the reduced prices have been a relief for their pockets.
“I can feel the reduction. Before, when I bought items, the tax was a lot, but now it’s not,” one shopper said in an interview with GhanaWeb.
Meanwhile, the Ghana Revenue Authority (GRA) has assured the public of strict monitoring to ensure full compliance with the new tax regime.
The authority has cautioned that businesses that continue to charge unauthorised levies will be sanctioned, adding that public education efforts are ongoing to help consumers fully benefit from the reforms.
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Source:
www.ghanaweb.com
