Ghana’s 2026 budget proposes major VAT reforms, including a rate reduction, an increase in the threshold, the abolition of levies, extended zero-rating, a VAT reward scheme, and comprehensive overhauls of the Income Tax, Customs, and Excise Duty Acts.
Ghana’s Ministry of Finance has presented the 2026 Budget Speech to parliament on 13 November 2025, introducing various tax measures, including VAT reforms.
The key tax measures are as follows:
VAT reforms
Ghana’s government is proposing several VAT reforms for the 2026 budget to make the country’s tax system more equitable, transparent, and business-friendly. These include:
- Abolishing the COVID-19 Health Recovery Levy;
- Abolishing the decoupling of the GETFund and NHIL levies from the VAT tax base, allowing both levies to be subject to input tax deductions;
- Abolishing the VAT on the reconnaissance and prospecting of minerals;
- Reducing the effective VAT rate from 21.9% to 20%;
- Raising the VAT registration threshold from GHS 200,000 to GHS 750,000;
- Extending the VAT zero-rating on the supply of locally manufactured textiles to 2028.
Other notable tax measures
- The introduction of digital solutions for tax collection systems allows for the monitoring and collection of VAT on cross-border transactions conducted on digital platforms owned by non-resident taxpayers.
- The introduction and operationalisation of Fiscal Electronic Devices (FED) to enhance compliance and facilitate the monitoring of taxable transactions by VAT taxpayers.
- The introduction of a VAT reward scheme is designed to encourage the public to assist with policing VAT revenue by collecting VAT receipts for purchases they make. This will allow taxpayers to use their VAT receipts to benefit from a VAT promotion and reward scheme.
- The Ghana Revenue Authority (GRA) is expected to complete the cleansing of its taxpayer registry and launch the first stage of the Integrated Tax Administration System (ITAS) by the end of December 2025.
Review of Core Tax Laws
The Government is expected to embark on a comprehensive reform of Ghana’s key tax laws in 2026. The reforms include the Income Tax Act, 2015 (Act 896), the Customs Act, 2015 (Act 891), and the Excise Duty Act, 2014 (Act 878). These reforms will align them with global best practices, promote equity and competitiveness, simplify compliance, and enhance revenue generation.
Review and consolidation of the Income Tax Act
The Income Tax Act, 2015 (Act 896), will undergo a comprehensive overhaul to keep pace with global tax developments and the digital transformation of the economy.
Review and consolidation of the Customs Act
The Customs Act, 2015 (Act 891) will be reviewed to align with emerging international standards in trade facilitation, digitalisation, and border efficiency. The reforms will be guided by the World Trade Organisation’s Trade Facilitation Agreement and the World Customs Organisation’s modern customs practices.
Review and consolidation of the Excise Duty Act
The Excise Duty Act, 2014 (Act 878), will undergo a comprehensive review to reflect both global trends and Ghana’s domestic priorities.
