The Ministry of Finance has rejected calls for the suspension of the 3 percent VAT Flat Rate which came into force in July.
The Association of Ghana Industries (AGI) had called for the discontinuation of the policy for a month to make way for further consultation.
The Food and Beverages Association also warned the policy will negatively affect consumers as the tax will be passed onto them.
In its reaction however, the ministry of finance, out rightly rejected the calls.
Speaking at the sidelines of the opening of a three-day conference and capacity building workshop on Countering Treaty and Transfer Pricing Abuse in Accra, Kweku Kwarteng, a deputy Finance Minister explained that the ministry lacks the power to put on hold the implementation of the 3 percent VAT flat rate.
“We do not have the power to freeze a law that has been passed by parliament. We took this [3percent VAT Flat rate] to parliament, the law was passed,” he said stressing that enough consultation was done during the development of the regulation for the implementation of the policy.
He said after the earlier deference of the implementation of the policy, for further engagement with stakeholders, the ministry is now “confident that the consultations have been adequate and it does not surprise me that you have importers, manufacturers now coming to say we think this flat rate is good. We do not think it will lead to increases in prices.”
In the wake of the opposition that met the announcement of the implementation of the policy, the Finance Committee of Parliament summoned the Finance Minister Ken Ofori Atta before it Thursday July 6, 2017 to answer questions over the controversial policy.
The Minority in parliament labeled the move as insensitive.
