- Ghana’s parliament has approved the VAT Bill, 2025, aimed at consolidating existing VAT laws into a comprehensive framework to enhance efficiency in tax administration and reform the VAT regime.
- The Bill will abolish the COVID-19 Health Recovery Levy in 2026, reduce the effective VAT rate from 21.9% to 20%, and allow businesses to deduct the Ghana Education Trust Fund and National Health Insurance Levy as input tax, lowering business costs.
- To improve compliance and revenue collection, the Ghana Revenue Authority will implement digital VAT collection for cross-border e-commerce, introduce fiscal devices to track transactions, and establish a consumer reward system to encourage receipt issuance; the Bill awaits presidential approval before becoming law.
Source Pagero
Ghana Parliament Passes 2025 VAT Bill to Simplify Tax System and Boost Economic Growth
- Ghana’s Parliament approved the Value Added Tax Bill 2025 to modernize and simplify the VAT system.
- The Bill aims to improve fairness, compliance, revenue efficiency, and administrative effectiveness.
- Several taxes, including those on gambling, the E-Levy, and the COVID tax, have been eliminated to ease financial pressure and stimulate economic activity.
- The reforms are intended to support SMEs, reduce their operating costs, and help tackle unemployment.
- The changes align with the government’s strategy to make business operations easier and strengthen the overall economy.
Source: regfollower.com
- See also
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