Deputy Finance Minister nominee, Thomas Nyarko Ampem, has proposed the introduction of a Value Added Tax(VAT) raffle draw strategy to encourage citizens to demand VAT receipts and help the government close the VAT gap.
Speaking during his vetting by the Appointments Committee on Monday, February 24, he emphasized the need to leverage innovative approaches to boost tax compliance and revenue collection.
He noted that many consumers do not insist on VAT receipts when making purchases, largely because they see no direct benefit in doing so.
To address this, he proposed a VAT lottery system where customers who demand VAT receipts could stand a chance to win various prizes, including household appliances such as fridges and irons.
“I will work with my minister and GRA to use technology to ensure that we rake in more revenue. Since my nomination I have had people giving me different suggestions. We have officials of GRA so experienced in this and when we give them the opportunity, they will assist us do it right.”
“One suggestion that has come up is the VAT lottery. Today, a lot of people go to buy things and they don’t insist on a VAT receipt because they don’t see the need for it. If we can have a VAT lottery that will let people know that if I get my VAT receipt and I enter into a draw possibly, I will win a fridge, an iron it doesn’t matter how small it is. Probably some of these things will get us there.”
He believes such incentives, though seemingly small, could significantly improve VAT compliance and ultimately enhance revenue mobilization.
Mr. Nyarko Ampem acknowledged that the Ghana Revenue Authority (GRA) has seasoned professionals with the expertise to enhance tax collection through technology-driven solutions. He expressed confidence that with the right leadership and incentives, the GRA could implement more effective tax strategies.
When asked about the government’s plan to collect taxes from global digital service providers like Amazon Web Services, which will begin charging VAT on purchases made by Ghanaian customers, he stated that the specific collection mechanisms are yet to be finalized.
However, he assured the committee that the government will work closely with relevant stakeholders to ensure effective revenue capture from digital transactions.
The government of Ghana replaced Sales and Services Tax with Value Added Tax (VAT)) in March 1998 with the aim of widening the tax net and improving the efficiency of tax administration.
It has been 17 years since VAT was introduced in Ghana, but the VAT systems have not achieved most of its objectives due to many compliance challenges.
Watch video:
‘You could possibly win a fridge, an iron… something small’ – Thomas Nyarko Ampem, Deputy Minister-designate for Finance hints at a ‘VAT raffle draw’ to encourage citizens to demand VAT receipts to help the ministry close the VAT gap.
Watch his vetting session here:… pic.twitter.com/hpcQsiILY6
— CITI FM 97.3 (@Citi973) February 24, 2025
