VAT reforms ease cost of living, deliver GHc6.5bn relief to households - GRA
7th January 2026
The Ghana Revenue Authority (GRA) says the implementation of the new Value Added Tax (VAT) regime is easing cost pressures on households, with an estimated GH¢6.5 billion returned to consumers following a drop in prices of goods and services.
According to the Authority, prices have declined by about 1.9 percent since the reforms took effect, after the effective VAT rate was reduced to 20 percent.
Speaking during a VAT compliance monitoring exercise at selected shopping malls in the Spintex enclave, Commissioner-General of the GRA, Anthony Sarpong, said the reforms are already yielding positive results and urged businesses to comply voluntarily with the revised VAT framework.
Mr Sarpong explained that the reforms include a reduction in the VAT rate, the abolition of the COVID-19 levy, the decoupling of VAT components, and an upward adjustment of thresholds for small businesses.
“We visited a number of shops this morning to see how the VAT reforms are being implemented, and we are satisfied that the businesses we inspected have reconfigured their systems and are applying the new VAT rates,” he said.
He noted that engagements with consumers showed widespread satisfaction with the price reductions, adding that this confirmed the Finance Minister’s earlier announcement that the reforms would return more than GH¢6.5 billion into the pockets of Ghanaians.
The GRA Commissioner-General also called on businesses to charge VAT appropriately and issue VAT invoices, while urging consumers to demand VAT receipts whenever they make purchases to help strengthen enforcement.
Mr Sarpong stressed that sustained compliance is essential for mobilising revenue for national development and supporting the broader economic vision of President John Dramani Mahama.
“When businesses and consumers act responsibly, together we can raise the revenue needed to grow the economy, create jobs and transform the nation,” he said, describing 2026 as a year of growth, job creation and economic transformation.
Meanwhile, several shopping malls visited during the exercise, including Palace Mall, Melcom, Orca Décor, United Commercial Trading and Palace Home Décor, confirmed that their systems have been updated to reflect the new VAT regime. Customers at the malls also expressed satisfaction with the price reductions resulting from the reforms.