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The Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Sarpong, has expressed satisfaction with the implementation of the new Value Added Tax (VAT) reforms, following an inspection tour of major retail outlets around the Spintex enclave in Accra. 

The delegation from the GRA visited Palace Mall, Melcom, Orca Deco, United Commercial Trading, and Palace Home Décor to assess firsthand how businesses were complying with the revised VAT regime. 

This included a reduction in the Value Added Tax (VAT) rate, the abolition of the COVID-19 levy, and an upward adjustment of thresholds for smaller businesses. 

Speaking to the media after the tour, Mr Sarpong said all the shops inspected had successfully reconfigured their systems and were applying the new VAT rates in line with the reforms announced by the government. 

He noted that engagements with consumers during the exercise revealed widespread satisfaction with the reduced VAT rate, confirming the Finance Minister’s assertion that the reforms were returning more than GH¢6.5 billion into the pockets of Ghanaians. 

Mr. Sarpong said the GRA would continue to encourage voluntary compliance among businesses, urging owners to properly charge VAT, issue VAT invoices, and ensure their systems reflected the new tax structure. 

He also appealed to consumers to play their part by demanding VAT invoices whenever they made purchases, stressing that responsible conduct by both businesses and consumers was key to mobilising revenue for national development. 

“Revenue mobilisation remains critical to the government’s vision for 2026, which has been outlined by President John Dramani Mahama as a year of growth, job creation, and economic transformation,” he added. 

Mr. Sarpong emphasised that effective VAT compliance would support the broader national agenda of resetting the economy, creating jobs, and transforming Ghana for the benefit of all citizens. 

Acting Commissioner of the Domestic Tax Revenue Division (DTRD) of GRA, Dr. Martin Yamborigya, confirmed widespread compliance with the newly implemented VAT reforms following field inspections and test purchases at retail outlets. 

He noted that under the new system, the National Health Insurance Levy (NHIL) and the GETFund levy were each charged at 2.5 per cent, while VAT was applied at 15 per cent, all calculated on the same tax base. 

He said the removal of the cascading effect, where levies were previously applied before VAT had simplified the tax system and resulted in lower prices for consumers.  

Dr. Yamborigya explained that test purchases conducted during the inspections confirmed an average savings of about 1.9 per cent on items due to the new VAT structure. 

He assured that the GRA would sustain its monitoring exercises across other parts of the country, with regional and district offices continuing enforcement and education to ensure full compliance with the law. 

Account Manager at Palace Mall, Joshua Israel, said after the introduction of the VAT reforms, they had adjusted their VAT rate from 21 per cent to the approved 20 per cent in line with the new requirements.  

“We appreciate the GRA's decision to abolish the additional one per cent levy and are grateful for the relief it has provided,” he added. 

He said they commenced full compliance with the revised VAT structure on January 1, 2026, and that the implementation was being rolled out across all their branches nationwide. 

Mr. Israel added that so far, the transition had been smooth, with no challenges reported by the customers or consumers.  

He stressed that going forward, should any issues arise, they would promptly engage and communicate with the relevant authorities to ensure continued compliance and effective resolution. 

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.