The 2025 Value Added Tax Bill aims to modernise and simplify the VAT system to improve fairness, compliance, and revenue efficiency.
Ghana’s Parliament has passed the Value Added Tax 2025 on 27 November 2025.
The purpose of the Bill is to revise and consolidate the framework governing the Value Added Tax. Presenting the Finance Committee’s report to Parliament, the Committee Chair, Hon. Isaac Adongo, explained that the Bill aims to establish a more equitable tax system, simplify VAT administration, encourage voluntary compliance and support economic growth.
Additionally, it is expected to strengthen revenue mobilisation and improve administrative efficiency, making tax collection more cost-effective.
Ghana has eliminated several taxes, such as those on gambling, the E-Levy and the COVID tax, as part of the 2025 Finance Bill in an effort to relieve financial pressure on households and stimulate economic activity.
This reform is also aligned with the government’s strategy to tackle unemployment by making it easier for businesses to operate. SMEs, which are significant drivers of economic growth and job creation in Ghana, have long struggled with challenges like high tax costs, informal competition and limited access to bank financing.
According to the International Council for Small Business (ICSB), easing the tax burden could reduce operating costs for these businesses, enhance their resilience and help strengthen the overall economy.
