The Commissioner-General of the Ghana Revenue Authority (GRA), Mr. Anthony Kwasi Sarpong, has described the newly introduced Value Added Tax (VAT) regime as a major turning point for Ghana’s revenue mobilisation efforts.
From today, January 1, 2026, the GRA has begun charging a revised VAT rate of 20 per cent, replacing the previous effective rate of 21 per cent.
According to Mr. Sarpong, the adjustment is intended to simplify VAT payments for businesses and service providers while strengthening domestic revenue collection.
The GRA Commissioner-General said the extensive reforms and adjustments made to the VAT system would significantly improve compliance and boost revenue in the short term.
“To bring parity into the system, we have removed the flat rate so that everyone consuming will be eligible to pay the standard rate,” he explained. “With the administrative strategies and reforms introduced, VAT is going to be a game changer for revenue generation in this country.”
Mr. Sarpong added that the Authority is committed to working closely with businesses to deepen understanding of VAT obligations and to promote a culture where consumers routinely demand VAT receipts when making purchases.
The rollout of the new VAT regime follows the passage of the VAT Bill, 2025, and its subsequent assent by the President.
The new law represents a significant overhaul of Ghana’s tax framework, aimed at simplifying tax administration, consolidating existing laws, abolishing the COVID-19 Levy, and improving compliance through enhanced digitalisation.
The reforms are also designed to promote fairness, support economic growth, and strengthen domestic revenue mobilisation as the country pursues fiscal sustainability.
According to the GRA, the changes align with recommendations from the International Monetary Fund (IMF) to reduce bureaucratic bottlenecks in tax collection.
Key elements of the reform include the unification of the flat-rate system, lower effective tax rates, the allowance for deduction of GETFund and NHIL as input tax, and improved efficiency in revenue administration.
The implementation of digital platforms, including the E-VAT system, is also expected to enhance accuracy and transparency in VAT collection.
In his New Year message, Mr. Sarpong called for stronger collaboration between the business community and tax authorities, stressing that mutual understanding and cooperation are essential to raising revenue to finance national development.
