GRA Sets GH¢225bn Target for 2026 (VAT Reforms Aim to Boost Revenue, Ease Small Business Burden)
The Ghana Revenue Authority (GRA) wants to raise GH¢225 billion in taxes by 2026. To do this, they are making big changes to the Value Added Tax (VAT) system. For example, they are raising the VAT registration threshold for businesses that sell goods from GH¢200,000 to GH¢750,000 in annual turnover. This will make it easier for smaller businesses to pay their taxes. The new framework also adds input tax credits for the National Health Insurance Levy (NHIL) and the GETFund levy, lowers the effective VAT rate to 20%, and gets rid of the VAT Flat Rate Scheme for retailers. Anthony Sarpong, the Commissioner-General of the GRA, spoke to the Parliament’s Public Accounts Committee on Monday, January 12. He said that the authority is working to improve domestic tax compliance in order to meet the target of GH¢225 billion by 2026. He also said, “From the beginning of the year, we are working deliberately to improve revenue mobilization.” Without money coming in, the President’s vision for the country can’t be realized.
