The NDC MP for Builsa South Dr. Clement Apaak has sued the Ghana Revenue Authority over the implementation of the 3% VAT Flat Rate Scheme.
Dr. Apaak argues the scheme has no “justifiable legal basis” in the 2017 VAT Act passed by Parliament this year.
The Scheme was rolled out on July 1, 2017.
According to the former presidential staffer, the “purported act of subjecting importers to both the VFRS and the standard rate is unlawful as there is no justifiable legal basis for it in the 2017 VAT Act.”
“Plaintiff [Dr. Apaak] further avers that since the defendant seeks to impose both the VFRS and the standard rate of VAT on importers of taxable goods, the defendant cannot at the same time disqualify such importers from deducting their input tax, a right available to all other persons subject to the payment of the standard rate VAT. Plaintiff avers that importers subject to the payment of the standard rate of VAT are similarly situated with all other persons subject to the said standard rate and cannot therefore be accorded dissimilar treatment in respect of the deduction of the input tax,” the writ said.
Dr. Apaak wants the court to declare the scheme as “unlawful”. Also, he wants the court to order “for the refund of all input VAT paid or, in the case of VAT that is payable, a set-off against VAT to be paid under and by virtue of the VFRS.
“A declaration that by subjecting the importers to bot the VFRS and the standard rate of VAT whilst at the same time barring the said importers from deducting input VAT, the defendant has discriminated against the said importers in contravention of Article 17 of the constitution. A declaration that all persons currently under the VFRS who paid VAT at the standard rate prior to the coming into force of the 2017 VAT Act have accrued rights to deduct input VAT paid prior to the coming into force of the said Act.”