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The Value‐Added Tax in Ghana
Author(s) -
AssibeyMensah George O.
Publication year - 1999
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1046/j.0275-1100.1999.01164.x
Subject(s) - demise , value added tax , ad valorem tax , indirect tax , consumption tax , tax reform , direct tax , economics , parliament , tax credit , economic policy , consumption (sociology) , public economics , political science , law , politics , sociology , social science
Ghana's Parliament enacted a value‐added tax (VAT) in December 1994, with collection to begin on March 1, 1995. The short preparation period proved fatal for the tax. However, the nation's fiscal problems continue and the government is resolved to reintroduce the tax in 1998. This article reviews the structure of the failed tax, showing how it would have been a more effective general consumption tax than the system it would have replaced, examines the reasons for its untimely demise, and considers prospects for a successful reintroduction of the tax. Ghana's experience with the VAT can hold important lessons for countries contemplating the introduction of such a tax.