A book providing a reflective account of the country’s journey towards adopting and implementing VAT (Value Added Tax) has been launched in Accra.
Authored by former Finance Minister Seth E. Terkper, the man who successfully led the implementation of the expenditure tax in 1998 after a failed attempt in 1995, the book traces back to give readers an understanding of the administrative and legislative development of the tax, offering lessons not only for Ghana but for the continent.
Titled, “VAT in Africa: The Ghanaian Experience,” the 378-page book is the author's second publication on this major fiscal policy tool.
The Chief of Staff of the Office of the Vice-President, Alex Segbefia, launched the book at a ceremony in Accra last Wednesday (26 June), where the Chief of Staff, Julius Debrah, purchased the first copy for GH¢30,000.
A former Minister of Finance, Kwame Peprah, who served from 1995 to 2001 and oversaw the implementation of VAT, chaired the event.
Resource
Mr Debrah praised the author for undertaking a second journey to write a book on VAT. He described it as a valuable resource for practitioners and students, encouraging the public to obtain a copy.
“It is not easy for people to compile their knowledge and experiences, and so for him to do this, I think I am proud of him because not many people spend time writing,” he added.
The Chief of Staff urged the Ghana Revenue Authority (GRA) to collaborate closely with the private sector to promote greater awareness and education on the importance of paying taxes.
Review
A Tax Partner at accounting and advisory firm PwC, Abeku Gyan-Quansah, who reviewed the book, said it carefully analysed the VAT from a fiscal perspective, considering tax policy, the policy dimension of VAT, its development from 1994/5 to 2025, implementation challenges and its political economy.
He added that the book’s ability to offer readers a thorough historical context and institutional memory made it a profound and clear research resource.
“The book looks at the past to ensure we do not repeat the mistakes of the past while guiding and serving as a blueprint for the future,” Mr Gyan-Quansah stated.
Pillar
Mr Terkper, for his part, explained that it was essential for the country to concentrate on four key taxes, which he described as the pillars of the economy.
They are income tax, expenditure tax, excise tax and import duty tax.
He added that any effort to imitate the taxes by introducing levies would distort the four pillars, and he said that the Electronic Transfer Levy (E-Levy) did not have any significant impact on the economy as it distorted the tax system.
Mr Terkper further supported a simplified tax system with additional reform of VAT to promote economic stability.
Mr Peprah, who wrote the foreword, stated that the book thoroughly chronicled the frustrations or challenges, triumphs and experiences gained along a winding VAT route in the country, and further offered valuable lessons on the intricacies of tax policy and administration that are beneficial beyond the country’s borders.
“The author shows how VAT colonies in Ghana and other African countries can be distorted notably by re-introducing many secondary taxes or levies that affect their smooth administration and compliance.
