The Ghana Revenue Authority (GRA) has reiterated its readiness to fully implement the Fiscal Electronic Device Act, 2018 (Act 966), a key part of ongoing reforms to modernise the Value Added Tax (VAT) regime and improve compliance.
The law, which took effect on May 4, 2018, mandates that specified taxable businesses use approved Fiscal Electronic Devices (FEDs) at all points of sale to ensure accurate transaction records and enhance revenue mobilisation.
Commissioner-General Anthony Kwasi Sarpong said the GRA plans to expand VAT coverage in the retail and service sectors, noting that VAT remains a consumption tax with untapped potential.
“If we are able to do that, it creates more opportunity for us to even review the rate in future,” he said.
Speaking in Accra during a courtesy call by senior management of Gold Fields Ghana, Sarpong revealed that new VAT reforms is expected to be presented to Parliament by October and implemented in early 2026 will remove the COVID levy and decouple certain charges that currently push the effective VAT rate to 21.9%.
“8% of that is not recoverable, meaning it becomes a cost to businesses. Under the proposed reforms, the effective rate will be 20% and fully deductible, ensuring no extra burden on businesses,” he explained.
The reforms also include the creation of an Independent Tax Appeal Board (ITAB) before the end of the year, providing a faster, less confrontational alternative to court proceedings for resolving tax disputes.
This, Sarpong said, aligns with President John Dramani Mahama’s call for a more “human-centred” approach to tax administration, treating taxpayers as partners in national development.
Additionally, the GRA will intensify nationwide tax education campaigns to improve awareness, particularly among small and medium enterprises (SMEs).
“When these businesses understand and participate in the tax system, we all benefit, and it creates room for possible rate reviews in the future,” Sarpong noted.
The Commissioner-General stressed that the combined measures, technology adoption, legislative reforms, improved dispute resolution, and public education are designed to broaden Ghana’s revenue base, create a fairer business environment, and strengthen economic growth.
Gold Fields Ghana, one of the country’s top taxpayers, was commended for its significant contributions to government revenue and community development.
Mr. Sarpong said that with committed implementation of these initiatives, both the tax authority and taxpayers stand to gain, ultimately boosting the Ghanaian economy.
