Ghana Announces Major VAT Reforms to Boost Business Growth and Economic Transformation

• The Finance Minister announced comprehensive reforms to Ghana’s VAT system to make it fairer, simpler, and more efficient.
• Key reforms include abolishing the COVID-19 Health Recovery Levy, removing VAT on mineral exploration, reducing the effective VAT rate from 21.9% to 20%, raising the VAT registration threshold, and extending VAT zero-rating for local textiles to 2028.
• The reforms aim to reduce business costs, improve compliance, and support economic growth, giving back GH¢5.7 billion to businesses and households.
• Raising the VAT threshold will ease the burden on small and micro businesses and simplify VAT administration.
• Abolishing VAT on mineral exploration is expected to boost investment in the mining sector and promote responsible mining practices.

Source: 3news.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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