Skip to main content

VAT cut puts GH¢6.5bn back in shoppers’ pockets as prices fall, says GRA

 The Ghana Revenue Authority (GRA) says recent VAT reforms are easing pressure on consumers, with about GH¢6.5 billion returned to households following a drop in prices.

According to the Authority, prices of goods and services have declined by about 1.9 per cent since the reforms took effect, following the reduction of the effective VAT rate to 20 per cent.

Speaking during a VAT compliance monitoring exercise at shopping malls in the Spintex enclave, Commissioner-General of the GRA, Anthony Sarpong, said early signs show the reforms are working as intended.

He explained that the changes include a reduction in the VAT rate, the removal of the COVID-19 levy, the decoupling of VAT, and higher thresholds for smaller businesses.

Sarpong said checks conducted at several shops showed that businesses had updated their systems and were applying the new VAT rates.

He noted that interactions with shoppers also confirmed growing satisfaction with the lower prices, reinforcing the government’s claim that the reforms are effectively putting money back into the pockets of Ghanaians.

The GRA boss used the visit to urge businesses to comply with the revised VAT framework voluntarily and to call on consumers to demand VAT invoices whenever they make purchases to strengthen enforcement.

He stressed that sustained compliance by both businesses and consumers is key to mobilising revenue for national development.

According to him, responsible tax compliance will support the government’s broader economic agenda of growth, job creation, and national transformation.

He added that the vision outlined by President John Dramani Mahama for 2026 depends mainly on the country’s ability to generate sufficient domestic revenue.

Malls visited during the exercise, including Palace Mall, Melcom, Orca Décor, United Commercial Trading, and Palace Home Décor, confirmed that their systems had been recalibrated to reflect the new VAT regime.

Customers at the malls also welcomed the changes, saying the price reductions were already being felt at the tills.

Labels:

Comments

Post a Comment

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...
Post a Comment
Read more

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...
Post a Comment
Read more

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...
Post a Comment
Read more