By Julian Owusu-Abedi
former Finance Minister and Presidential Adviser on the Economy, Seth E. Terkper, is set to launch his book on ‘VAT In Africa, The Ghanaian Experience’ on 25th June 2025.
The book, which is second of two books on VAT (Value Added Tax) to have been authored by the distinguished former finance minister, chronicles the difficulties and challenges in rolling out the VAT project as a new tax handle to replace the sales and services tax in the 90s, to generate revenue for economic growth but its path was far from smooth.
This book traces VAT’s remarkable journey from the policy’s shaky start and eventual triumph through its numerous modifications and administrative overhauls to its current form under the VAT Act 2013 (Act 870).
It highlights not just the policy’s technical aspects; such as its move from a sales-and-service tax to a broad-based consumption tax, but also the political, economic, and administrative decisions that made this transformation possible.
The book narrates how the first attempt in 1995 was met with strong opposition. The “Kumepreko” demonstrations filled the streets of Accra, reflecting deep resistance from the populace and opposition parties alike. The policy was suspended just a few months after its initial launch.
However, the author stresses that the temporary failure was not the end of the story. The government remained determined and after extensive consultations, education campaigns, and political negotiations, a revamped VAT was successfully implemented in 1998. That marked a key turning point in Ghana’s ability to broaden its revenue base and fund its developmental goals.
A careful analysis of legislative documents, historical events, and administrative practices, the book underscores the adaptability of policy in the face of opposition, and the crucial role of institutions in strengthening a country’s revenue base.
The narrative shows how a policy, once fiercely protested against, can become a mainstay of a nation’s financial architecture and a tool for development.
From series of insightful case studies, the book highlights numerous policy missteps that have resulted in excessive VAT burdens, widespread evasion, and avoidance practices, ultimately shattering the perception of VAT as a reliable “money spinner.”
As the author shows, these experiences hold valuable lessons not only for Ghana but for other African countries and developing nations grappling with the implementation and administration of VAT in their own jurisdictions.
