Ghanaians will pay a 5% VAT on any purchased building – Ato-Forson

The Minority Leader in Parliament, Dr Cassiel Ato Forson, has hinted at the government’s proposed 5% Value Added Tax (VAT) on any purchased building.

Dr Forson said that if approved, Ghanaians will be expected to pay more to buy a house or any other structure.

“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 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,” he lamented.

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.

He accused the government of being insensitive to the plight of the ordinary Ghanaian.

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