Finance Minister applauds NPP for enabling fiscal electronic device reforms

Finance Minister Dr Cassiel Ato Forson commended the previous New Patriotic Party (NPP) administration for enacting legislation that paved the way for the implementation of fiscal electronic devices during the presentation of the 2026 Mid-Year Fiscal Policy Review in Parliament.

Background

The concept of fiscal electronic devices was first proposed by the previous National Democratic Congress (NDC) administration in 2016. However, it was the previous NPP administration that enacted the necessary enabling legislation, which has been crucial for the ongoing tax reforms. The Taxation (Use of Fiscal Electronic Device) Act, 2018 (Act 966), laid an important legal foundation for this reform.

Your Money Is Safe Under Mahama Administration – Ato Forson Assures Ghanaians

Dr Cassiel Ato Forson emphasized that while the idea of introducing fiscal electronic devices originated under a previous NDC administration, the NPP government deserves recognition for passing the enabling law. He noted that the legislation was introduced in 2018, eight years ago, but implementation had not begun until now. "The concept of fiscal electronic device was first proposed by the previous NDC administration in 2016. But, Mr Speaker, the previous NPP administration deserves commendation for enacting the necessary enabling legislation," he told Parliament.

What This Means

The introduction of fiscal electronic devices is expected to play a critical role in strengthening tax administration by improving Value Added Tax (VAT) collection, reducing revenue leakages, and ensuring businesses properly account for the taxes they collect. Dr Cassiel Ato Forson stressed that the government was determined to reverse the trend of low VAT collection and called on Parliament to support efforts to improve VAT compliance. Ghana currently loses an estimated 60% of its potential VAT revenue through non-compliance and systemic inefficiencies, which is unacceptable.

What Happens Next

The Finance Minister announced that the Chairperson and Ranking Members of Parliament's Finance and Budget Committees have been invited to provide strategic oversight for the implementation of the initiative. He also emphasized the importance of cracking down on businesses and individuals who collect VAT from taxpayers and keep it instead of remitting it to the State. Dr Cassiel Ato Forson stated that fiscal electronic devices will help improve VAT collection, reduce revenue leakages, and ensure that businesses account properly for VAT they collect.

The government's efforts to implement fiscal electronic devices are a significant step towards strengthening tax administration and improving VAT compliance. The Finance Minister's commitment to reversing the trend of low VAT collection and his call on Parliament to support efforts to improve VAT compliance are a positive development for the country.

Source: JOY