PwC Ghana has described the tax measures outlined in the 2026 Mid-Year Budget Review as largely a continuation of reforms announced in the 2026 Budget Statement, with the latest update providing greater clarity on implementation timelines rather than introducing sweeping new tax policies.
Presenting the firm’s assessment of the Mid-Year Review, Abeku Gyan-Quansah, Partner, Tax Services at PwC Ghana, said while many of the reforms remain on course, the focus has now shifted from policy announcements to execution, technology-driven tax administration and legislative action by Parliament.
According to him, the review offers businesses a clearer picture of where Ghana stands on tax reforms, particularly regarding VAT implementation, customs legislation, agribusiness incentives, tax administration and the overhaul of the country’s exemptions regime.
Comprehensive Tax Reforms Largely on Track
PwC observed that one of the biggest achievements since the 2026 Budget was the successful passage and implementation of the new VAT law.
The firm noted that Parliament acted early enough to approve the legislation, enabling the Ghana Revenue Authority (GRA) to issue administrative guidelines before implementation commenced on January 1, 2026.
On the Customs and Excise Bills, PwC described developments as encouraging, noting that the bills are already before Parliament ahead of the original timeline, which anticipated their consideration before the presentation of the 2027 Budget.
PwC is, however, calling on Parliament to ensure broad stakeholder engagement before passing the bills so the resulting laws effectively support Ghana’s long-term economic development.
PwC noted that reforms to the Income Tax Act appear to have been delayed from the earlier November target to June 2027. While acknowledging the revised timeline, the firm said the extension is understandable given the complexity of undertaking a comprehensive overhaul of Ghana’s income tax regime.
Nevertheless, PwC expressed hope that the legislation could still reach Parliament earlier to allow sufficient public consultation.
Agribusiness Incentives Receive Welcome Boost
PwC welcomed the government’s proposal to abolish the 20 percent excise duty on locally produced fruit juices, describing the move as consistent with the government’s commitment to strengthen agribusiness through targeted tax incentives.
The firm believes the measure could provide relief to local manufacturers and encourage greater investment in agro-processing.
PwC also expects the pending Excise Duty Bill before Parliament to provide further clarity on measures affecting edible oils, an area government had previously indicated would receive policy attention.
Technology to Drive Revenue Mobilisation
According to PwC, one of the strongest themes emerging from the Mid-Year Review is government’s growing reliance on technology to improve tax compliance instead of raising tax rates.
The firm said the Finance Minister’s emphasis on broadening the tax base through digital solutions reflects a more sustainable approach to domestic revenue mobilisation.
Abeku Gyan-Quansah indicated that the government’s renewed commitment to implementing the long-delayed Fiscal Electronic Device (FED) system legislation, which has existed since 2018 but has yet to be operationalised.The firm believes the accompanying VAT Reward Scheme could significantly improve compliance by encouraging consumers to demand VAT invoices from businesses.
PwC also noted that the Publican AI platform, introduced earlier this year to strengthen customs risk assessment, will continue to support verification of import declarations. Beyond that, the government plans to introduce a new Sentinel System to monitor imported services, further expanding technology’s role in tax administration.
The firm described these initiatives as evidence of the government’s determination to improve revenue collection through better data and digital oversight rather than higher tax burdens.
New Trade Measures to Reduce Revenue Leakages
PwC also highlighted the government’s intention to introduce a “First Port Duty Rule” aimed at curbing tax leakages associated with goods declared as transit cargo.
The firm explained that the new system seeks to ensure taxes are accounted for through greater collaboration with neighbouring customs authorities, reducing opportunities for goods intended for other countries to be diverted into Ghana without the appropriate duties being paid.
According to PwC, the proposal represents another attempt to tighten customs administration and safeguard government revenue.
Tax Administration Becoming More Efficient
PwC believes taxpayers should expect noticeable improvements in their interaction with the Ghana Revenue Authority.
The firm cited the nationwide rollout of the Integrated Tax Application System (ITAS) as an important milestone in modernising domestic tax administration.
PwC also welcomed the full operationalisation of the Independent Tax Appeals Board (ITAB), describing it as a significant development for taxpayers seeking impartial resolution of tax disputes.
According to the firm, the functioning of ITAB strengthens fairness and accountability within Ghana’s tax administration framework.
Exemptions Regime Faces Major Overhaul
PwC warned that businesses operating under Ghana’s Free Zones programme should closely monitor impending legislative changes.
According to the firm, government believes aspects of the exemptions regime have been abused over the years and intends to tighten the system.
PwC noted that significant reforms are also expected within the bonded warehousing regime, where import duty deferrals have historically been granted.
The mining sector is likewise expected to experience further adjustments following recent changes to mineral royalty arrangements and the effective discontinuation of the VAT Relief Purchase Order system.
The firm cautioned suppliers to mining companies to ensure they comply with the new tax framework to avoid future disputes with the Ghana Revenue Authority.
Implementation Now the Real Test
PwC concluded that the 2026 Mid-Year Budget Review marks a transition from announcing reforms to executing them.
Rather than introducing sweeping new tax policies, the review demonstrates the government’s commitment to implementing previously announced measures through legislation, digitalisation and stronger tax administration.
According to the firm, the success of the reforms will ultimately depend on timely parliamentary approval, meaningful stakeholder engagement and effective implementation by the Ghana Revenue Authority.
