Parliament approves VAT bill 2025 to reform tax structure

Parliament has approved the Value Added Tax (VAT) Bill 2025, a major reform measure aimed at improving clarity, consistency and legal certainty within Ghana’s VAT regime.

The new bill replaces the existing flat-rate system with a unified structure and raises the registration threshold for VAT-eligible businesses, a change expected to exempt many micro and small enterprises from VAT requirements.

During the debate, Minority Leader Alexander Afenyo-Markin cautioned that the revised framework could result in additional taxes for businesses and increase the financial burden on the public.

Deputy Finance Minister Thomas Nyarko Ampem dismissed those concerns, insisting that the reforms are designed to simplify compliance, not impose new tax pressures on businesses or consumers.