2023 Budget: VAT rate to go up by 2.5% – Ofori-Atta

The Value Added Tax (VAT) is expected to be increased by 2.5%, Finance Minister, Ken Ofori-Atta has said.

The standard VAT rate is 12.5%, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%.

Ofori-Atta said, the proposal to increase the rate forms part of the government’s seven-point agenda to revitalize the country’s economy

Presenting the 2023 Budget Statement in Parliament on Thursday (24 November), the minister said, the increase the VAT rate by 2.5% is “to directly support our roads and digitalization agenda”

He also announced that the government will undertake major structural reforms in the public sector.

Ofori-Atta said the government is determined to change the narrative after admitting that the country has been going through troubles.

“The government is determined to change the negative narrative and rebuild for a better future,” he said.