- The Ghana Revenue Authority (GRA) assured that the new VAT regime will not increase consumer prices or distort the market.
- Major VAT reforms effective January 1, 2026, include a 20% effective rate, abolition of the COVID-19 Health Recovery Levy and VAT Flat Rate Scheme, a higher registration threshold, and full input tax deductions for NHIL and GETFund Levy.
- Concerns from the Abossey Okai Spare Parts Dealers Association about higher prices and unfair burdens were addressed as misunderstandings.
- The GRA explained that the new system allows full input VAT deduction, lowering traders’ costs and resulting in lower final consumer prices compared to the old system.
- The Authority clarified that the higher registration threshold will not distort competition, as both registered and non-registered traders face similar final prices for consumers.
Source: modernghana.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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