The government has embarked on an in-depth evaluation of its Value Added Tax (VAT) policy, with the goal of streamlining the system and creating a more conducive atmosphere for businesses throughout the nation.

This move was revealed during a top-level discussion between Ghanaian leaders and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group.

At the meeting, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, stressed the administration’s resolve to reshape the VAT framework in active partnership with international institutions.

He revealed that a team from the International Monetary Fund (IMF) is currently in Ghana, working in tandem with local officials to guide and support the reform efforts.

Dr. Forson pointed out that the existing VAT rate of 21.9%—one of the highest across Africa—has led to persistent compliance hurdles and has placed a strain on business operations.

“We are fully aware of the challenges posed by the existing VAT structure,” Dr. Forson said.

“That is why we are undertaking a complete overhaul of the system. I can assure our partners and the Ghanaian public that this reform process will be concluded before the main budget is presented in November.”

This effort is regarded as an important step toward boosting tax adherence, enhancing domestic revenue collection, and making the tax environment more appealing to enterprises.

The World Bank voiced its approval of the reform initiative and pledged continued cooperation with Ghana to ensure the establishment of a tax system that is both effective and fair.