HOUSE TO REVISIT VAT - May peg rate at 13%

Hopes are high that the roll-on effect of the implementation of the Value Added Tax (VAT) on the distributive sector is to removed.

Besides, the tax level on import and manufacturing sectors are to be reduced from 17.5 percent to a range between 13 and 15 percent.

Informed sources said in Accra yesterday that the government is determined to remove the harsh effect of the VAT, but ruled out its abolition.

Members of cabinet briefed the MPs on the options which the executive was considering to ease the economic hardships including a reduction in the level of the VAT.

The statement said the final proposals for the review of the VAT will be placed before the Parliament when it formally reconvenes this week and it will take note of the feedback from the MPs from their constituencies.