By Laudia Anyorkor Nunoo
Tema, Jan. 24, GNA – Mr David Lartey Quarcoopome, Chief Revenue Officer and Domestic Tax Revenue Division (DTRD) Projects Coordinator at the Ghana Revenue Authority (GRA), says Ghana’s new VAT law is expected to reduce the effective tax burden on businesses and stimulate economic growth from 2026.
Speaking at a Ghana Ports and Harbours Authority’s (GPHA) powered media engagement, he said prior to the reforms, cumulative taxes and levies had pushed the effective VAT rate to about 21.9 per cent, increasing operational costs for businesses.
“With the abolition of the COVID-19 levy and harmonisation of VAT-related taxes, the effective rate is expected to reduce to about 20 per cent,” Mr Quarcoopome explained.
He said the changes under VAT Act 1151 of 2025 were designed to harmonise all VAT-related handles, remove fragmentation, and eliminate ambiguities that previously confused taxpayers and tax administrators alike.
Mr Quarcoopome said the reforms would improve cash flow for businesses by allowing them to reclaim input tax on purchases, rather than absorbing levies as business costs.
“This certainty in the system, combined with a lower effective rate, is expected to boost compliance, expand the tax base, and provide relief to taxpayers across the board,” he said.
He added that the reforms would help businesses price their goods more efficiently, improve competitiveness, and support enterprise growth.
GNA
Edited by Kenneth Odeng Adade