Finance Minister Dr. Cassiel Ato Forson has unveiled plans for a major overhaul of Ghana’s Value Added Tax (VAT) system, aimed at easing the financial burden on citizens and fostering a more equitable, growth-friendly economy.
Delivering the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24, Dr. Forson outlined a series of reforms the Mahama administration intends to implement under the VAT Act. The changes, he said, are expected to be finalised by October 2025 and included in the 2026 Budget.
“As part of our commitment to fiscal fairness, the COVID-19 Levy will be abolished, the VAT Flat Rate will be reduced and ultimately removed, and the cascading effects of the NHIS and GETFund levies will be eliminated,” Dr. Forson announced.
He explained that the government plans to introduce a unified VAT rate to streamline the system, reduce inefficiencies, and remove pricing distortions that hurt consumers and businesses alike.
“These reforms go beyond revenue collection—they are part of a larger strategy to accelerate economic recovery, improve public financial management, and reinforce sound monetary policy,” the Minister said.
Dr. Forson assured that the government will prepare a new VAT Bill by October 2025 and submit it to Parliament as part of the 2026 Budget Statement.
He emphasised that the tax reforms are in line with the government’s broader agenda to diversify the economy, enhance domestic revenue mobilisation, and provide relief for households and businesses struggling under current economic pressures.
“Our ultimate goal is to restore macroeconomic stability, rebuild public confidence, and create a tax system that works for every Ghanaian—not just a privileged few,” Dr. Forson concluded.
