Parliament passes VAT (Amendment) Bill
Parliament yesterday passed the Value Added Tax (Amendment) Bill, 2017 to reduce the cost of supplies of real estate and transportation by air in order to provide relief to consumers.
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The bill, which amended the VAT Act, 2013 (Act 870), provided a simplified VAT scheme for retailers so as to improve their compliance levels.
The Act also gives legal backing to a VAT flat rate scheme that would facilitate collection of VAT on the supply of goods in the distribution chain and to provide for related matters.
Clauses in the Act
The Act amended section three of the VAT Act, 2013 (Act 870) to mandate the taxable person who is a retailer or wholesaler to account for tax payable under that section at a rate of three per cent calculated on the value of the taxable supply.
It also amended section 48 (1) (d) in the light of the classification of the supply of financial services as an exempt supply.
Flat rate scheme
Presenting the report of the Finance Committee of Parliament, its chairman, Dr Mark Assibey-Yeboah, said the committee observed that with the passage of the bill into law, all taxable retailers and wholesalers of goods would be required to account for the VAT at a flat rate of three per cent calculated on the value of taxable supply, unless the Commissioner-General of the Ghana Revenue Authority (GRA) directed otherwise.
Budget for other government obligations
In another development, Parliament approved GH¢38,517,821,802 as the 2017 annual budget estimates of other government obligations.
The various commitments relating to other government obligations included pensions, gratuities, social security, general government derivatives, interest payments, subsidies on petroleum products and grants to the Road Fund, Energy Fund and District Assemblies Common Fund.
