Finance Minister Dr. Cassiel Ato Forson has unveiled sweeping VAT reforms aimed at easing the financial strain on households and reducing the cost of doing business across the country.

Presenting the 2026 Budget Statement, Dr. Forson disclosed that the abolition of the COVID-19 levy alone will return GH₵3.7 billion to individuals and firms next year.

He further announced the restoration of input tax deductions on the GETFund and NHIL levies — a move expected to cut business operating costs by 5%.

The Minister also revealed that the effective VAT rate has been reduced from 21.9% to 20%, offering additional relief on goods and services.

In a major change for SMEs, the VAT registration threshold has been increased from GH¢200,000 to GH¢750,000, removing thousands of small businesses from compulsory VAT payment.

Targeted sector incentives include:


  • Removal of VAT on mineral reconnaissance and prospecting to boost upstream investment.

  • Extension of zero-rating on locally manufactured textiles to 2028, supporting Ghana’s textile industry.

According to Dr. Forson, the reforms form part of a broader strategy to stimulate growth, strengthen private enterprise, and provide relief after years of fiscal tightening.

Overall, the VAT overhaul is projected to inject billions into the private sector, enhance competitiveness, and support sustainable economic expansion.