Vol 2, No 1 (2019)

Table of Contents

Open Access
Original Research Article
Article ID: 943
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by William Gabriel Brafu-Insaidoo, Camara Kwasi Obeng, Ewura Adwoa Ewusie
Financ. Stat. J. 2019 , 2(1);    431 Views
Abstract This study examines the relative effects of alternative import policy reform features and value added tax on import tax revenues in Ghana. To achieve this objective, the study first estimates the effect of alternative import policy features and VAT on import tax changes. The estimated coefficients are then applied to the observed values of each respective import policy feature and VAT to obtain the contribution of each policy feature to change in import tax revenue. The study concludes that Ghana has made some revenue gains by reducing the average official duty rate and imposing VAT rate on imports, and that revenue gains have outstripped revenue losses from the reforms. It is subsequently suggested that the government should maintain the current strategy of replacing tariffs with a type of consumption tax.
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