The Ghana Revenue Authority (GRA) has said that comprehensive reforms to the Value Added Tax (VAT) regime are expected to lower prices, improve compliance, and support government’s GH¢225 billion revenue target for 2026. 

Head of the Domestic Tax Revenue Division (DTRD) Free Zones Office,Mr Thomas T. K. Agorsor, and Chief Revenue Officer and DTRD Projects Coordinator of the GRA, Mr David Lartey Quarcoopome, outlined the reforms at a media engagement powered by the Ghana Ports and Harbours Authority (GPHA). 

They explained that the new VAT Act 1151 of 2025 harmonised VAT, the GETFund levy, and the National Health Insurance Levy into a single standard rate of 20 per cent, restoring the traditional VAT structure. 

According to them, the previous decoupling of levies had increased business costs, discouraged compliance, and contributed to a VAT compliance gap of about 60 per cent. 

The abolition of the COVID-19 levy, recoupling of levies, and higher VAT registration threshold are expected to ease the cost of doing business and stabilise prices for consumers. 

The officials said small businesses below the new threshold would be transitioned to the Modified Tax Scheme, while medium and large businesses would benefit from input tax credits and simplified compliance. 

They added that enhanced taxpayer education, digital payment platforms, electronic invoicing, and targeted market outreach would support voluntary compliance. 

“With certainty in the system and fairness in implementation, compliance is expected to rise, the tax gap narrows, and revenue targets will be met,” the officials said.