June 23, 2024
P.O.Box 613ER Gombilla House, Lamashegu Market, Tamale, Northern Region

Get ready to pay 5% VAT on buildings – Ato Forson

The Minority Leader in Parliament, Dr Cassiel Ato Forson has accused the government of being insensitive to the plight of the ordinary Ghanaian.

According to him, although citizens were already overburdened with taxes, the 2024 budget has further exacerbated the situation.

“As you may be aware, the insensitive Akufo-Addo, Bawumia government is also seeking to introduce a new raft of draconian tax measures on the already impoverished Ghanaian on the back of the 2024 budget.”

“These tax measures, which are currently before Parliament, include the following; an imposition of VAT on non-life insurance such as motto or car insurance, marine insurance, fire insurance, building insurance, goods in transit,” he said.

Dr Forson was speaking at the National Democratic Congress’ (NDC) Moment of Truth press conference on Wednesday, December 6, 2023.

The Minority Leader, who is also the MP for Ajumako Enyan Esiam constituency, explained that these proposed VAT policies were currently before Parliament pending approval.

Again, Dr Forson added that if this is approved, Ghanaians will be expected to pay a 5% VAT on any building purchased.

“He [Akufo-Addo] has also imposed a 5% VAT flat rate on residential and commercial real estate. Ladies and gentlemen, Ghanaians should get ready to pay 5% VAT anytime they buy a house from an individual or a real estate company going forward.

“If this law goes through; the VAT before parliament goes through – if you intend to buy a house, get ready to put 5% aside for President Akufo Addo and Alhaji Bawumia. For every house you buy going forward, you will pay 5% VAT on the quantum of the amount that you are supposed to buy. So if it is GH₵1 million you are buying you will pay GH₵50,000 to President Akufo-Addo and Alhaji Bawumia.”

The Minority Leader added that VAT will also be imposed on stationery items like paper, pens, textbooks, and domestic airlines among others, implying that if anyone buys a book or takes a domestic flight they would be expected to pay extra.

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