VAT Flat Rate: Prices of goods go up by 20.5%

The General Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey said the new VAT Flat Rate has caused the increase in the price of businesses which have been transferred to the consumer.

The General Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey has revealed that general prices on goods have increased by about 20.5%.

Samuel Aggrey said this follows the application of the 3% VAT Flat Rate replacing the former 17.5% VAT which takes effect from July 1, 2017.

He said the new VAT Flat Rate has caused the increase in the price of businesses which have been transferred to the consumer.

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He told Accra-based Citi FM that importers and distributors must not be blamed for the increase since the government has refused to suspend the implementation process.

“This is what government wants, we keep telling them. We have engaged them severally telling them that this will not work it will not be fair but they are not listening so what it means is that we have to go ahead otherwise we will fall foul of the law whiles we are still engaging them, we will have to apply it,” he warned.

He added that goods which are already on the market as well as those yet to be imported will be affected by the tax.

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“For the category of goods that will be affected it cuts across board, nothing will be exempted because once you’re trading in business it means that whatever that you are bringing or supplying will have to attract the 3%, but it goes beyond the 3% because when you are doing your analysis you need to add the 3% at the end of it and therefore you see that it’s not 3% anymore but then it’s more than 8 % sometimes even 15% so that is how it’s going to be.”

Aggrey recommended that the government must take pragmatic measures to ensure that the customer does not pay more than expected.

The General Secretary of the Food and Beverages Association of Ghana, Samuel Aggrey said the new VAT Flat Rate has caused the increase in the price of businesses which have been transferred to the consumer. Read Full Story