Accra: The Ghana Revenue Authority (GRA) has announced that comprehensive reforms to the Value Added Tax (VAT) regime are anticipated to lower prices, improve compliance, and support the government's GHS225 billion revenue target for 2026.
According to Ghana News Agency, Mr. Thomas T. K. Agorsor, Head of the Domestic Tax Revenue Division (DTRD) Free Zones Office, and Mr. David Lartey Quarcoopome, Chief Revenue Officer and DTRD Projects Coordinator, of the GRA, outlined the reforms during a media engagement organized by the Ghana Ports and Harbours Authority (GRA). They detailed that the new VAT Act 1151 of 2025 harmonizes VAT, the GETFund levy, and the National Health Insurance Levy into a single standard rate of 20 percent, reverting to the traditional VAT structure. Previously, the separation of these levies had increased business costs, discouraged compliance, and contributed to a VAT compliance gap of approximately 60 percent.
The removal of the COVID-19 levy, recoupling of levies, and an increased VAT registration threshold are expected to reduce the cost of doing business and stabilize prices for consumers. Officials noted that small businesses below the new threshold would transition to the Modified Tax Scheme, while medium and large businesses stand to benefit from input tax credits and simplified compliance procedures.
They further explained that enhanced taxpayer education, digital payment systems, electronic invoicing, and targeted market outreach efforts would support voluntary compliance. "With certainty in the system and fairness in implementation, compliance is expected to rise, the tax gap narrows, and revenue targets to be met," the officials stated.