VAT SERVICE LAUNCHES FLAT RATE SCHEME.

Hon. Kwadwo Baah-Wiredu has launched the Value Added Tax Flat Rate Scheme for the informal retail trade sector. The Flat Rate Scheme which is pegged at three per cent would be paid by certain categories of traders instead of the current 12.5 %.

Launching the scheme the Hon. Minister underscored the need to increase revenue generation so that the economy can substantially finance the country’s development agenda independent of external donors.

“Government is under increasing financial pressure as we strive to meet rising demand for public services. This demands that revenue and tax authorities must increase their effort in revenue collection, increase compliance and on closing tax loopholes”.

He said the situation demands home grown solutions to the country’s fiscal challenges such as widening the tax net and increasing compliance by tax payers. Adding, “It is for this reason that a simplified tax accounting system which holds the prospects of tapping into the enormous revenue potential of the informal sector is most welcomed”.

Minister Baah-Wiredu commended in particular, the leaders of the Ghana Union of Traders Association (GUTA) for playing a flagship role in the process towards the implementation of the scheme. “This represent a clear example of the benefits that the nation stands to derive from co-operation between the private sector and the public sector”, he added.

The acting president of GUTA, Mr. G.K Ofori on his part commended all the traders who have already registered for VAT and implored those who have not to quickly join the flat rate scheme.

He said members of GUTA will go round and educate the traders on this new scheme and thus begged the traders to exercise patience when the officers come around.

The Chairman of the Revenue Agencies Governing Board, Mr. Osei Kwabena, thanked the VAT Service for the excellent effort in making the scheme a reality. He, however, cautioned the Service to make the implementation very smooth and advised the traders to be sincere in the paying their taxes.

The Commissioner VAT Service, Mr. Anthony Minlah on his part said paying tax is a social responsibility noting that Ghanaians are always crying for social improvement and these improvements will invariably come from revenue from taxes paid. Thus, it is imperative that we honour our tax obligation.