Kofi Ahovi

  The Ghana Revenue Authority (GRA) is targeting a reduction in the country’s Value Added Tax (VAT) gap from the current 60% to about 30% by the end of 2028 as part of efforts to improve tax compliance and increase domestic revenue mobilisation. Commissioner for the Domestic Tax Revenue Division of the GRA, Dr. Martin Kolbil Yamborigya, said the target formed part of the Authority’s VAT Strategic Plan, which focuses on closing compliance gaps and improving VAT collections. According to our VAT Strategic Plan, we are hoping that between now and the end of 2028 we should be able to close this gap from the current 60% to about 30%,” he said. Dr. Yamborigya disclosed this when he spoke to the media on the sidelines of the launch of the GRA’s VAT Compliance Campaign, following compliance visits to selected businesses at the Accra Mall. He explained that reducing the VAT gap would require the Authority to improve collections from the existing tax base by ensuring that businesses and indi...

  The Ghana Revenue Authority (GRA) has raised concerns over persistent VAT compliance challenges among businesses, saying some firms collect the tax from customers but fail to remit it to the government. Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the challenge remained a major gap in the country’s efforts to improve domestic revenue mobilisation. Speaking at the 14th Annual International Tax Conference 2026, Mr Sarpong said the Authority’s assessment showed significant weaknesses in VAT registration and compliance among businesses. So today, we are saying that four out of every business in Ghana correctly charges VAT. The remaining six, they do not register. Or when they register, they collect their money and it doesn’t end up with government,” he said. He said the GRA was therefore combining technology with stronger compliance measures to improve VAT collection. Sarpong said the implementation of the Fiscal Electronic Devices Act would allow most businesses to c...

  The Ghana Revenue Authority (GRA) has firmly rejected claims by the Abossey Okai Spare Parts Dealers Association that the newly implemented 20 per cent Value Added Tax (VAT) regime under the VAT Act, 2025 (Act 1151), will drive up consumer prices, distort competition and increase the cost of doing business. The Authority described the concerns as stemming from a “fundamental misunderstanding” of how the revised VAT system operates, insisting that the new structure is designed to lower the effective tax burden on traders rather than increase it. In a detailed statement, the GRA explained that the transition from the previous 4 per cent Flat Rate Scheme to the standard 20 per cent VAT regime does not automatically translate into higher prices. Under the former flat-rate system, traders paid input VAT of 21.9 per cent on purchases, which was not deductible. This meant the tax formed part of their cost base. However, under the new regime, input VAT of 20 per cent is fully deductible,...

 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 ...

  The Ghana Revenue Authority (GRA) has confirmed that it will begin the implementation of the value added tax reforms from 1st January 2026. This follows the passage and subsequent presidential assent given to the VAT Bill 2025. This development marks a significant overhaul to simplify the country’s tax system, consolidate laws, abolish the COVID-19 Levy, and improve compliance through digitisation in revenue administration. The law is also aiming for greater fairness and economic growth as the country makes progress to enhance domestic tax mobilization. The reform is part of the recommendations from the International Monetary Fund to reduce bureaucracies in tax collection. Key changes include unifying the flat-rate system, reducing effective rates, allowing deduction of GETFund/NHIL as input tax, and boosting revenue efficiency. This will also include the deployment of digital channels like the E-VAT for accurate collection. Speaking to Journalists on the new VAT, Commissioner fo...

  The Ghana Chamber of Mines has expressed profound appreciation to the Government of Ghana for scrapping Value Added Tax (VAT) on exploration activities, an intervention the industry describes as timely, strategic, and essential for sustaining the country’s long-term mineral potential. The announcement was made during the 11th Ghana Mining Industry Awards (GMIA) held at the Movenpick Hotel, where Ing. Dr. Kenneth Ashigbey, Chief Executive Officer of the Chamber, hailed the policy decision as a bold commitment to strengthening Ghana’s competitiveness as a mining investment destination. Speaking at the ceremony, Dr. Ashigbey emphasised that the removal of VAT on exploration in the 2026 Budget is more than an administrative change; it represents a transformative incentive that will stimulate new exploration, de-risk investments, and help replenish the nation’s mineral reserves. This intervention is not just an administrative adjustment; it is a bold commitment to attracting new inves...

  Finance Minister Dr. Cassiel Ato Forson has announced a series of tax reforms under the 2026 Budget aimed at creating a fairer, simpler, and more business-friendly fiscal system. Presenting the budget to Parliament, Dr. Forson said the reforms mark a turning point in Ghana’s tax administration and are designed to make compliance easier for businesses while strengthening domestic revenue mobilisation. This is not just a tax reform. It is a step toward a more just, predictable, and business-friendly economy,” Dr. Forson stated. “It honours our pledge to lighten the load on honest taxpayers while building a stronger foundation for national development.” Among the measures, government has abolished the COVID-19 Health Recovery Levy, reduced the effective VAT rate from 21.9 percent to 20 percent, and raised the VAT registration threshold from GH¢200,000 to GH¢750,000 to ease the burden on small and medium enterprises. These steps, Dr. Forson explained, will return about GH¢5.7 billion...

  The Ghana Revenue Authority (GRA) has announced a 15% Value Added Tax (VAT) on non-life insurance premiums, effective July 1, 2025. The new tax will apply to policies covering areas such as property, health, and travel—but notably, motor insurance will remain exempt. The policy, which forms part of measures outlined in the 2025 national budget, is expected to widen the country’s tax net and boost revenue for public services. For businesses and individuals, this means higher premiums on non-life insurance products. Consumers seeking coverage in sectors like property, health, or travel may now pay more, potentially pushing some to reconsider or reduce coverage levels.

  The Ghana Chamber of Mines has urged the government to remove Value Added Tax (VAT) on mineral exploration activities, describing the levy as a major disincentive to discovering new mineral resources and sustaining future production. President of the Chamber, Michael Edem Akafia, noted that exploration is the “lifeblood of mining” and fundamental to the long-term viability of the industry. He warned that the imposition of VAT on exploration-related expenses undermines efforts to replenish mineral reserves and secure future investments, especially at a time when Ghana seeks to consolidate its position as a mining hub in Africa. The relevance of exploration in ensuring a pipeline of viable projects can not be overemphasized. It is the single most critical activity that guarantees continued mineral production,” Akafia said, while delivering his presidential address at the Chamber’s 97th Annual General Meeting in Accra on May 30, 2025. The Chamber is advocating for tax incentives to ...

President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has called for an urgent review of Ghana’s Value Added Tax (VAT) structure, describing its cascading effect as a major driver of high business costs.   In an interview with Bernard Avle on  The Point of View  on Channel One TV on Wednesday, May 14, Dr. Obeng urged the government to prioritize VAT reform ahead of the 2025 national budget presentation in November. We have to revise the VAT, we have to restructure. The cascading effect of VAT is one major factor in costing. And it is not affecting it [businesses positively.” Dr. Obeng revealed that Finance Minister Dr. Cassiel Ato Forson had previously assured stakeholders that a task force would be established to address VAT-related concerns. However, he expressed disappointment that no such engagement has occurred. The finance minister, Dr. Ato Forson, promised they were going to form a taskforce to work on this, but we haven’t gotten any meeting...

 The Finance Minister has justified the government’s decision to remove VAT on motor vehicle insurance, arguing that it would have placed an unfair burden on ordinary Ghanaians, including taxi, Uber, and trotro drivers. Dr. Cassiel Ato Forson speaking on Joy News’ PM Express  on Tuesday, March 11, after presenting the 2025 Budget Statement to Parliament, Dr. Forson said the decision was based on an analysis of its economic impact. The previous administration, I think, in December 2023, introduced VAT on insurance, and as part of the bill that they introduced, which became law in January 2024, there is now VAT on all insurance, including vehicles,” he explained. He clarified that while some forms of insurance, such as marine and corporate insurance, largely affect businesses, VAT on motor insurance would have been directly borne by individual vehicle owners. His comments reinforce the government’s commitment to shielding vulnerable groups from excessive taxation while ensuring ...

  The Ghana Revenue Authority (GRA) and the Criminal Investigations Department (CID) have arrested five employees of some quarrying companies for various infractions, including non-issuance of Value Added Tax (VAT) receipts. They were arrested last Wednesday, December 7, during an enforcement exercise by the GRA on VAT compliance at stone quarrying sites across the country. The exercise was aimed at shoring up revenue to meet the authority’s GH¢80.3 billion tax target for the year 2022. The companies were four Chinese companies - E & H Quarry Limited, Atlantic Rock Quarry Products Company Limited, China Railway Wuju Quarry, Quality Quarry and a Ghanaian company - Paul Addai Stone Quarry Limited. The companies were located at Sakyikrom Nsawam Adoagyiri in the Akwapim South District of the Eastern Region. Full audit The Area Enforcement Manager of Accra Central, GRA, Joseph Annan, who led a team of officers from GRA, said test purchases had indicated that most operators at quarri...

  The government has increased the Value Added Tax (VAT) from 12.5 to 15 per cent as part of measures to reset the economy to the path of growth. The 2.5 per cent increment is to directly support the roads sector and the government's digitalisation agenda. The Finance Minister, Ken Ofori-Atta, announced in Parliament on Thursday during the presentation of the 2023 Budget Statement and Economic Policy of the Government. Among a raft of measures to be rolled out in line with resetting the economy is the review of the E-Levy Act and reduce the headline rate from 1.5 per cent to one percent of the transaction value as well as the removal of the daily threshold. Resource measures 63. Mr. Speaker, Government has consistently indicated its intention to improve the revenue collection effort by leveraging technology to enhance tax administration, identify and register taxable persons and improve tax compliance. 64. Mr. Speaker, Government has received several proposals for review of the Ele...

  The Minister of Finance, Ken Ofori-Atta, is expected to present the 2023 Budget Statement and Economic Policy of the Government to Parliament tomorrow, the Majority Chief Whip, Frank Annoh-Dompreh, told Parliament last Friday and urged members of the House to be present.  The budget, from our sources, is expected to inspire hope, restore macroeconomic stability, bolster resilience, achieve inclusive growth and ensure value addition to the country’s raw materials in order to rake in more revenue and foreign exchange to contain the current economic challenges. Our sources have also hinted of an upward adjustment in the Value Added Tax (VAT), currently at 12.5 per cent, to between 14 and 15 per cent. The presentation will be done in accordance with Article 179(1) of the Constitution. The President shall cause to be prepared and laid before Parliament at least one month before the end of the financial year estimates of the revenue and expenditure of the Government of Ghana for t...

  Businesses that do not issue value added tax (VAT) invoices to customers will be arrested and prosecuted by officials of the Ghana Revenue Authority (GRA), effective September 1, 2022. Equally, customers who do not demand and take the invoices will face similar treatment. The decision follows the roll-out of a special exercise by the GRA to ensure that businesses and customers comply fully with the VAT Act, 2013 (Act 870) by charging, issuing and accounting for VAT appropriately. The compliance and enforcement exercise will involve the invigilation of shops, mystery purchases and swoops across the country by GRA officials to ensure maximum compliance to help increase revenue mobilisation. Interview The Commissioner of the Domestic Tax Revenue Division (DTRD) of the GRA, Edward Appenteng Gyambrah, who gave the notice in an interview, said the exercise would run from September 1 to December 31, this year. He told the Daily Graphic last Friday that the exercise followed revelations ...

Consumers may have to pay an increase of about eight to twelve percent from February for some commodities should the Ghana Revenue Authority (GRA) implement the amended Value Added Tax (VAT) rate. This is according to the Importers and Exporters Association of Ghana (IEAG). The association says, the amendment, which was gazetted on December 31, 2021, will see the business community move from paying a three percent flat rate plus one percent COVID-19 levy to paying VAT of about twenty percent. They further lamented that businesses with capital from GH¢500,000 would be paying more than twenty percent even though standard VAT should not be more than 12.5 percent per the amendment. In an interview with  Citi Business News , General Secretary of the Importers and Exporters Association of Ghana, Samson Asaki Awingobit said the amendment would affect goods that had already been cleared in 2021 and are yet to be sold. He added that business operators and retailers would have no option othe...