Businesses in Ghana are beginning to feel a sense of relief following recent tax updates, a development that is gradually translating into reduced costs for consumers, according to Mary Kwarteng Darko, an Associate Director in PwC Ghana’s tax practice.

Speaking during a UK-Ghana Chamber of Commerce and PwC Ghana webinar on “Tax Updates in Ghana”, Darko noted that the changes marked a clear shift in the country’s tax regime from an aggressive stance towards a more business-friendly environment.

She remarked that overall sentiment is that the country is taking a more balanced approach to taxation, shifting from a period of heavy tax imposition to one where the system is being rationalised, simplified, and made more business-friendly.

She pointed to the abolition of the Emissions Levy, COVID‑19 Health Recovery Levy, and the E‑levy as particularly welcome developments. According to her, these measures directly affect pricing structures and, ultimately, the cost borne by consumers.

“All of these changes are definitely welcome”, she noted, adding that businesses are “still feeling some of the impact of the price reduction from these levies that have been abolished.”

Darko added that while businesses are the immediate beneficiaries of the reforms, consumers are expected to benefit as cost savings are passed on through lower prices over time.

Reforms roll out amidst mixed sentiments

The tax updates, implemented over the past year, include both immediate and phased changes. Gifty Appiah, Associate Director at PwC Ghana and moderator of the session, highlighted that two major levies – the Emissions Levy and the COVID‑19 Levy– were formally repealed in April 2025. She also noted that the VAT reforms took effect from 1 January 2026 with the new VAT Act simplifying computation by applying VAT and levies on the same base, rather than layering levies before VAT.

However, not all changes point in the same direction. The Special Import Levy and the Growth and Sustainability Levy, which were expected to expire, have both been extended to 2028. For gold mining companies, the Growth and Sustainability Levy was increased to three per cent during 2025  but  reverted back to one per cent this year, with  the introduction of a new royalty structure.

These, together with others, affect long-term business planning, resulting in mixed business sentiments.

“As regards the sentiment of the business community, I would say that it is mixed”, Darko said, citing concerns over VAT registration thresholds, particularly the distinction between goods and services, and the treatment of services supplied to free zone entities under the new VAT law.

What businesses still expect from the GRA

Darko noted that while the relief measures are appreciated, businesses are looking for more clarity and consistency from the Ghana Revenue Authority (GRA) and policymakers on the reform of the Income Tax, Customs Duty, and Excise Duty Acts.

She said companies expect consolidation and clarity as “because of the many amendments, it has been difficult to keep track and know at every point in time what the current state of the law is,” she explained.

Businesses, she added, want clearer direction on the assymetry in VAT application and disparities between goods and service providers, clear guidelines to reduce conflicting interpretations, and a review of penalties and interest regime.

GRA’s call: relief comes with responsibility

From the tax administration’s perspective, the relief granted must be matched with improved compliance.

Dr. Dominic Naab, Acting Head of VAT at the GRA, said the simplified VAT system is designed to improve compliance, increase revenue, and reduce distortions.

“No business community pays VAT. The person who pays the VAT is the consumer”, he said, stressing that businesses are merely collecting on behalf of the state.

He urged businesses, therefore, to register, file, pay, and disclose income honestly, noting that these obligations remain unchanged despite the reforms. Dr. Naab also called on consumers to insist on VAT invoices, warning that failure to issue them renders transactions incomplete and illegal.

Similarly, Daniel Nuer, Technical Adviser at the Ministry of Finance, emphasised that while government has provided a more business‑friendly framework, taxpayers must play their part in order to feel the full benefits of the changes.

Taxpayers should stop hiding behind informality as the system is being restructured to bring more taxpayers into the net fairly and transparently,” Nuer said.

He remarked that while government has provided relief, market forces determine the  benefits that are transferred to consumers. He further indicated that Government has gone past the time of controlling prices as we operate in a free market. Consequently, he urged consumers to study the market response and act accordingly.

Beyond tax reliefs, the panel also explored VAT digitalisation, electronic invoicing, registration thresholds, foreign exchange gains and losses, and the planned review  of Ghana’s Income Tax, Customs, and Excise laws, as part of efforts to modernise and future‑proof the country’s tax system.