Partner for Strategy and Partnerships at Deloitte Ghana, Yaw Appiah Lartey, has urged the government to consider further reducing the effective VAT rate to 17.5% during next year’s mid-year budget review.

Speaking at the Ghana National Chamber of Commerce and Industry’s 2026 Budget Review Seminar, Lartey said the proposed cut in the 2026 Budget—from 21.9% to 20%—remains too high for businesses and could undermine Ghana’s competitiveness in the region.

“The government was ambitious in removing some tax handles in their first budget, including the Covid-19 levy, and introducing VAT reforms. These are positive steps,” Lartey said. “However, the VAT at 20% is still high. We believe the government should consider a deeper reduction, perhaps to 17.5% during the mid-year review, which aligns with historical levels and would help Ghana remain competitive compared to peers in Sub-Saharan Africa.”

Finance Minister Dr. Cassiel Ato Forson, during the 2026 Budget presentation, announced the abolition of the Covid-19 levy and outlined several VAT reforms. These include reducing the effective VAT rate from 21.9% to 20%, raising the VAT registration threshold from GH₵200,000 to GH₵750,000, and extending VAT zero-rating on locally manufactured textiles to 2028.

Dr. Forson noted that scrapping the Covid-19 levy alone would return GH₵3.7 billion to households and businesses, while the full set of VAT reforms is expected to provide nearly GH₵6 billion in relief. He expressed confidence that these measures would stimulate economic activity, support private sector growth, and ease the financial burden on Ghanaians facing rising living costs.

Lartey argued that a further VAT reduction would enhance business competitiveness, attract investment, and encourage private-sector-led growth, reinforcing the positive momentum created by the 2026 Budget reforms.