Audio By Carbonatix
Finance Minister Dr Cassiel Ato Forson says the government's planned nationwide rollout of a cross-border technology solution for collecting Value Added Tax (VAT) from non-resident digital platforms is expected to generate about GH¢2.3 billion in its first full year without increasing tax rates.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, Dr Forson said the initiative forms part of the government's broader strategy to improve tax compliance through technology rather than imposing additional taxes.
According to him, the cross-border VAT system was successfully piloted in April 2026, with the trial confirming that the platform is functional, secure and compliant with regulatory requirements.
"Government is now moving decisively to secure the necessary regulatory approval for its nationwide rollout.
"Upon full deployment, the system is projected to generate about GH¢2.3 billion in its first full year of operation, with revenue expected to grow by about 20% annually," he said.
The Finance Minister stressed that the projected revenue would come without increasing tax rates.
"This is sustainable revenue without increasing tax rates. It simply ensures that cross-border digital platforms earning income from Ghanaian customers pay their fair share of taxes," he stated.
Dr Forson said the digital tax initiative complements what he described as the most ambitious reforms to Ghana's VAT system in more than a decade, aimed at eliminating long-standing distortions, improving efficiency and supporting business growth.
He noted that the government abolished the COVID-19 Health Recovery Levy, decoupled the GETFund Levy and the National Health Insurance Levy from the VAT base to make both eligible for input tax deductions, and reduced the effective VAT rate from 21.9% to 20%.
The reforms also abolished VAT on reconnaissance and prospecting for minerals, easing the tax burden on thousands of micro and small businesses by removing their obligation to register for and charge VAT.
Additionally, the Finance Minister noted that the government has extended the zero-rating of locally manufactured textiles to 2028.
Dr Forson said the reforms have simplified the VAT system, removed distortions, lowered the tax burden on businesses, and strengthened the foundation for improved tax compliance.
He added that while legislative reforms were necessary, technology would remain central to transforming revenue administration and boosting domestic revenue mobilisation sustainably.
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