As Ghana moves forward with its Value Added Tax (VAT) reform plans, the Country Senior Partner at PricewaterhouseCoopers-PWC Ghana, Vish Ashiagbor, has underscored the critical importance of effective execution.
Speaking on Joy News’ PM Express, Ashiagbor emphasized that while the proposed reforms appear well-structured, their success will depend on precise implementation.
Ashiagbor acknowledged that the VAT system requires significant restructuring and that the government’s proposed tax measures have been carefully evaluated. However, he noted that immediate changes were avoided to ensure a well-managed transition.
“So I think the tax measures have been carefully thought through and are being carefully assessed. That is why you see, for example, the changes to the VAT regime have not been made immediately,” he explained.
While business leaders, including the CEO of the Chamber of Commerce, have expressed concerns about delays in VAT reforms, Ashiagbor defended the government’s phased approach. He noted that a rushed implementation could disrupt economic stability, and a structured rollout is necessary to ensure long-term benefits.
Despite expectations of increased revenue from the VAT reforms, Ashiagbor warned that achieving these targets will require strategic effort.
“The increases that have been projected will take some doing, but if I read the narrative and the initiatives that they’ve put forward, I think it’s possible,” he remarked.
However, he tempered his optimism with caution, reiterating, “On paper, it looks good, but implementation is always the key.”
Ashiagbor’s insights highlight the delicate balance between fiscal responsibility and economic growth. As Ghana refines its tax policies, the government must ensure that VAT reforms are not only well-designed but also effectively executed.
