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Els MBN360
Ghana’s Parliament has approved the VAT Tax Bill 2025, marking a significant step towards simplifying the country’s tax system and reducing the burden on businesses. The bill aims to reduce the effective VAT rate from 21.9% to 20% by abolishing the COVID-19 Health Recovery Levy and allowing input tax deductions for the National Health Insurance Levy (NHIL) and Ghana Education Trust Fund (GETFund) levies.
The new VAT regime will also increase the VAT registration threshold from GH¢200,000 to GH¢750,000, exempting small and micro businesses from VAT obligations. This move is expected to ease compliance for small enterprises and promote entrepreneurship.
The reforms are part of the government’s broader strategy to modernize Ghana’s tax system, improve revenue mobilization, and support economic recovery. The Ghana Revenue Authority (GRA) is expected to implement the changes by January 1, 2026, pending final approval from Parliament
Debating the motion, the Minority Leader, Alexander Afenyo-Markin, cautioned that the revised VAT framework could impose additional taxes on businesses and place a additional burden on the general public.
The Deputy Finance Minister, Thomas Nyarko Ampem, however, rejected the claim, insisting that the new VAT framework will simplify compliance rather than impose additional tax burdens on businesses or the public.
