Parliament passed a law that puts a flat 5% tax rate on the rentals of commercial space and real estate developers’ immovable land. This happened after the Value-Added Tax (VAT) Amendment Bill 2023 was passed.
Members of Parliament (MPs) from the National Democratic Congress (NDC) were against the new tax. Still, the majority, which was made up of MPs from the ruling New Patriotic Party (NPP), finally got it passed through a headcount.
The Value Added Tax (VAT) Amendment Bill 2023, which Parliament successfully passed, adds a new tax. However, sanitary pads made in the country are exempt from VAT, and imported electric vehicles used only for public transportation are not taxed at all.
Some Ghanaians have said that President Nana Addo Dankwa Akufo-Addo’s government broke its promise to lower taxes while it was still in opposition by putting new taxes on the people of Ghana.
On the other hand, the government says that taxes are necessary to do its job and keep the promises it made to the people of Ghana.