Publication: Introducing a Value Added Tax : Lessons from Ghana
Date
2001-12
ISSN
Published
2001-12
Author(s)
Chapman, Emma
Abstract
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country's first VAT was repealed after just three and a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.
Citation
“Chapman, Emma. 2001. Introducing a Value Added Tax : Lessons from Ghana. PREM Notes; No. 61. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/1368fcab-1734-5658-a12b-b2927b973258 License: CC BY 3.0 IGO.”