2023 Budget: VAT rate to be increased by 2.5% - Finance Minister announces

Value Added Tax (VAT) is set to be increased by 2.5% in 2023.

The Minister of Finance, Ken Ofori-Atta has said.

The Minister was in Parliament on Thursday, November 24, to present the 2023 Budget Statement and Economic Policy of the government.

During his presentation, the Minister disclosed that the budget is anchored on a seven-point agenda aimed at restoring macroeconomic stability and accelerating economic transformation.

Among the seven-point agenda, Ken Ofori-Atta said the government wants to aggressively mobilise domestic revenue.

To this end, he said VAT will be increased by 2.5%.

“To aggressively mobilise domestic revenue we will among others increase VAT rate by 2.5% to directly support our roads and digitization agenda,” Ken Ofori-Atta told Parliament today.

Currently, the standard VAT rate is 12.5%, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%.

In his 2023 Budget Presentation, the Finance Minister also said the goal of government is to significantly enhance revenues, significantly cut down the cost of running government, significantly enhance local production, invest more to protect the poor and vulnerable, provide access to good roads, technology, education and health to every Ghanaian.