Former Finance Minister and current Presidential Adviser on the Economy, Seth E. Terkper, has launched his second book on Value Added Tax (VAT), whilst urging for a more strategic use of Ghana’s Stabilization and Heritage Funds during economic downturns.
The new book, titled “VAT in Africa: The Ghana Experience”, was unveiled at a well-attended ceremony held at the Ghana Academy of Arts and Sciences last Wednesday 25 June 2025. The publication explored the evolution of VAT in Ghana and across Africa, offering insights into tax policy, reform, and fiscal sustainability.
In his remarks, Mr. Terkper criticized successive governments for neglecting the Stabilization and Heritage Funds mechanisms he helped establish to buffer the economy against shocks such as commodity price crashes and global recessions.
Instead, he said, authorities have turned to imposing new taxes or rebranding old ones, a practice he warned undermines public trust and complicates the tax regime.
“When VAT was introduced, it replaced many consumption taxes. But now, many of those taxes have crept back as levies,” Terkper noted, adding that the proliferation of such levies only serves to distort the tax system and create confusion among taxpayers.
He warned that these approaches risk reversing gains in tax reform and pose serious challenges for the Ghana Revenue Authority (GRA), especially during periods of economic stress. The reliance on regressive tax measures, he added, disproportionately burdens low-income earners and small businesses still recovering from the COVID-19 pandemic and high inflation.
Terkper argued that resorting to fiscal buffers like the Stabilization Fund rather than taxing already struggling citizens would not only ease pressure on households but also restore confidence in Ghana’s economic management.
“Sound use of the Stabilization Fund reinforces the integrity of our tax system and signals to citizens and investors that Ghana is committed to responsible fiscal governance,” he asserted.
The book adds to the former minister’s growing contributions to tax policy literature and is expected to serve as a resource for policymakers, academics, and tax professionals across the continent.