Shoppers in Accra are starting to see modest but encouraging reductions in the prices of goods, as businesses adjust to recent reforms in the Value Added Tax (VAT) system following the government’s removal of the COVID-19 levy and the three per cent flat rate.

The tax changes have effectively reduced VAT on goods to 20 per cent, and checks at several retail outlets across the capital show that the scrapped levies are no longer being applied. Prices of basic consumer items are already reflecting the revised tax structure.

Retailers confirmed that their billing and point-of-sale systems have been updated to comply with the new VAT regime, with receipts now showing lower charges compared to previous weeks.

Consumers say the impact, though gradual, is becoming noticeable. One shopper, Mercy Kobi, described the development as a welcome relief, saying it has eased some of the financial pressure on households.

“I’m really happy because I remember how much I paid the last time due to the levies. Now I only pay NHIL, GETFund and VAT,” she said.

Another shopper, who preferred to remain anonymous, noted that the price reduction is more evident when purchasing goods in larger quantities.

“You feel the difference when you buy in bulk. For small purchases, the reduction is not very obvious,” she explained.

Meanwhile, the Ghana Revenue Authority (GRA) has assured the public that it is closely monitoring compliance with the new tax regime. The Authority warned that businesses that continue to charge unauthorised levies will be sanctioned, adding that public education campaigns are underway to ensure consumers fully benefit from the tax reforms.