- Reduction in VAT Rate and Changes to Registration Threshold: The Government of Ghana plans to reduce the effective VAT rate from 21.9% to 20% by decoupling the Ghana Education Trust Fund and NHIL levies from the VAT base, and raising the VAT registration threshold from GHS 200,000 to GHS 750,000. These changes aim to simplify compliance for small and medium-sized enterprises (SMEs) while lowering operational costs.
- Abolition of VAT on Mineral Reconnaissance: The budget proposes the abolition of VAT on mineral reconnaissance and exploration, which is expected to reduce costs for mining operations and attract new investments in the sector. This measure is intended to enhance the competitiveness of the mining industry.
- Extension and Non-Extension of Zero-Rating: The zero-rating for locally manufactured textiles will be extended until 2028 to support the domestic textile industry, while the zero-rating for locally assembled vehicles will not be extended beyond December 31, 2025. This decision may lead to increased costs for consumers of locally assembled vehicles, impacting the competitiveness of local assemblers against imported alternatives.
Source EY
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