The Deputy Minister of Finance nominee Thomas Nyarko Ampem has proposed the introduction of a VAT lottery as a strategy to improve tax compliance and reduce Ghana’s significant VAT gap, which currently stands at approximately 61%.
Speaking during his vetting before Parliament’s Appointment Committee on Monday, the nominee emphasized the role of technology and incentives in enhancing revenue collection by the Ghana Revenue Authority (GRA). He highlighted that many consumers fail to request VAT receipts because they see no direct benefit.
“One suggestion that has come up is a VAT lottery. Today, a lot of people go to buy things and don’t insist on VAT receipts because they don’t see the need for it. If we can have a VAT lottery that will let people know that, oh, if I get my VAT receipt and enter into a draw, I will possibly win a fridge or an iron, it doesn’t matter how small it is. Probably some of these little things will get us there,” he said.
The nominee also assured the committee that he would work closely with the Minister of Finance and the GRA to implement effective compliance measures. He also acknowledged the expertise within the GRA and stressed the importance of providing the right leadership and incentives to tax officials to drive results.
When asked about how Ghana would collect VAT on digital services such as those provided by Amazon Web Services, the nominee admitted that he did not have a specific strategy at the moment but would collaborate with stakeholders to ensure the country captures the appropriate revenue.
The proposal for a VAT lottery aligns with global best practices, as similar initiatives have been successfully implemented in countries like Taiwan and Portugal to encourage tax compliance. However, its feasibility and potential impact in Ghana remains to be seen.
