Introducing a Value Added Tax : Lessons from Ghana
In 1998 Ghana's government successfully introduced a value added tax (VAT). But this success followed a failed attempt in 1995, when the country's first VAT was repealed after just three and a half months. Ghana's experience provides...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2001/12/2011707/introducing-value-added-tax-lessons-ghana http://hdl.handle.net/10986/11360 |
| Summary: | In 1998 Ghana's government
successfully introduced a value added tax (VAT). But this
success followed a failed attempt in 1995, when the
country's first VAT was repealed after just three and a
half months. Ghana's experience provides several
lessons for the successful introduction of a
VAT-particularly the importance of recognizing public
sensitivity to changes in the tax system and of securing
public acceptance when introducing a VAT. A VAT's
introductory rate has a big influence on public opinion, but
so do public education and management of public
expectations. In addition, political commitment- in terms of
both an enabling macroeconomic environment and the enactment
of legislation-is crucial for securing popular support and
ensuring the timely introduction of a VAT. |
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