GRA: New VAT Reforms to Lower Prices, Boost Compliance (GH¢225bn Target in Sight!)
The Ghana Revenue Authority says that big changes to the Value Added Tax system should lower prices, make it easier for people to pay their taxes, and help the government reach its goal of raising GH¢225 billion in revenue by 2026. The Ghana Ports and Harbours Authority held a media event where Mr. Thomas T. K. Agorsor, Head of the Domestic Tax Revenue Division Free Zones Office, and Mr. David Lartey Quarcoopome, Chief Revenue Officer and DTRD Projects Coordinator, talked about the reforms. They said that the new VAT Act 1151 of 2025 brings the GETFund levy, the National Health Insurance Levy, and VAT together into one standard rate of 20 percent, bringing back the old VAT structure. The officials said that the earlier separation of levies had raised business costs, made it harder to comply, and increased the VAT compliance gap to about 60%. The COVID-19 levy will be removed, levies will be put back together, and the VAT registration threshold will be raised. These changes are expected to make doing business cheaper and keep prices stable for consumers. They also said that small businesses below the threshold would be moved to the Modified Tax Scheme. Medium and large businesses would benefit from input tax credits, easier compliance, better taxpayer education, digital payment systems, electronic invoicing, and targeted market outreach to get more people to pay their taxes.
