The Minority in Parliament has cautioned that additional tax increases may be imminent, arguing that the newly approved Value Added Tax (VAT) Bill, 2025, will impose heavier burdens on already struggling businesses.

The caucus claims that by abolishing the flat-rate VAT system, the bill effectively raises VAT on retail goods and services from 3% to 15% and increases VAT on real estate from 5% to 15%.

During the debate on the bill on Wednesday, November 26, 2025, Minority Leader Alexander Afenyo-Markin argued that the revised tax structure threatens to worsen the economic hardships faced by businesses. He contended that the measures will complicate compliance and ultimately place additional financial strain on the private sector.

“The burden contained therein is this: you are increasing retail services VAT from 3% to 15%. Also, real estate is going up from 5% to 15%. The revenue-neutrality language you are using is not of interest to us. You state in your own report that the introduction of this bill will help the government generate revenue. We are telling you that this bill is being brought because you need revenue,” he stated.

However, Deputy Finance Minister Thomas Nyarko Ampem dismissed the Minority’s claims, insisting that the new VAT structure will ease compliance rather than introduce new taxes.

“The bill, contrary to what the Minority Leader is saying, is not imposing any new tax on Ghanaians. It is rather giving back to Ghanaians. The decision to change the treatment of the Health Insurance Levy and GETFund Levy to allow for tax-credit deductibility is giving back. The NHIL alone, by changing from a straight levy to a VAT-creditable levy, offers relief,” he said.