The Importers and Exporters Association of Ghana (IEAG) has projected a hike in commodity prices between eight and 12 per cent in February if the Ghana Revenue Authority (GRA) executes the amended Value Added Tax (VAT) rate.
This comes after the government in the 2022 Budget Statement and Economic Policy enacted the VAT Amendment Act which was gazetted in December 2021 and expected to be implemented in February.
According to the Executive Secretary of IEAG, Samson Awingobit Asaki, “Ghanaians are going to experience some increases in prices of commodities if GRA implements the new VAT which is moving the business community from three per cent flat rate plus the one per cent Covid-19 levy to a whooping percentage of 19.2 per cent”.
Speaking to the Press, Mr Awingobit Asaki stated that the GRA must educate the public on the amended tax for them to understand its repercussions if executed.
He further explained that although the standard VAT must not exceed 12 per cent, per the amendment, there would be an increase t 19.2 per cent for businesses with capital starting from GH₵500,000
The amendment would affect goods that have already been cleared in 2021 and are yet t be sold. For this reason, businesses and retailers don’t have a choice but to pass on the difference to consumers.
This increase will come as a shock to consumers if there is no proper education, he added.