Businesses in Ghana are beginning to experience some relief following recent tax reforms, a development that is gradually feeding into lower costs for consumers, according to Mary Kwarteng Darko, Associate Director in PwC Ghana’s tax practice.
She made the observation during a UK-Ghana Chamber of Commerce and PwC Ghana webinar on “Tax Updates in Ghana,” noting that the changes signal a clear shift in Ghana’s tax policy from a more aggressive stance towards a business-friendly approach.
According to her, there is a growing sense that the country is moving towards a more balanced tax system—one that is being rationalised and simplified after a period of heavier tax burdens.
She highlighted the abolition of the Emissions Levy, COVID-19 Health Recovery Levy, and the E-levy as particularly significant, explaining that these directly influence pricing structures and ultimately affect what consumers pay.
“All of these changes are definitely welcome,” she said, adding that businesses are already “feeling some of the impact of the price reduction from these levies that have been abolished.”
Darko further noted that while businesses are the immediate beneficiaries, consumers are expected to benefit over time as savings are gradually passed through in the form of lower prices.
Mixed reactions as reforms roll out
The tax changes, introduced over the past year, include both immediate and phased reforms. Gifty Appiah, Associate Director at PwC Ghana and moderator of the session, explained that the Emissions Levy and COVID-19 Levy were formally repealed in April 2025. She also noted that VAT reforms, which took effect from January 1, 2026, have simplified tax calculations by applying VAT and levies on a common base instead of stacking levies before VAT.
However, not all measures point in the same direction. The Special Import Levy and the Growth and Sustainability Levy, which were expected to expire, have both been extended to 2028. For gold mining companies, the Growth and Sustainability Levy was adjusted to three per cent in 2025 but has since reverted to one per cent, alongside the introduction of a revised royalty structure.
These changes, among others, are influencing long-term business planning and contributing to mixed sentiments within the business community.
“As regards the sentiment of the business community, I would say that it is mixed,” Darko noted, pointing to ongoing concerns around VAT registration thresholds, the distinction between goods and services, and how services provided to free zone companies are treated under the new law.
Calls for clarity and consistency
Darko added that while businesses welcome the reforms, they are also calling for greater clarity and consistency from the Ghana Revenue Authority (GRA) and policymakers, particularly regarding ongoing reviews of the Income Tax, Customs Duty, and Excise Duty laws.
She explained that frequent amendments have made it difficult for businesses to keep track of current regulations. “Because of the many amendments, it has been difficult to keep track and know at every point in time what the current state of the law is,” she said.
Companies, she added, are seeking clearer guidance on VAT asymmetries between goods and services, more consistent interpretations of tax rules, and a review of penalties and interest regimes.
GRA: relief must come with compliance
From the perspective of the tax authorities, officials say the benefits of the reforms must be matched with stronger compliance.
Dr. Dominic Naab, Acting Head of VAT at the GRA, said the simplified VAT system is designed to improve compliance, boost revenue, and reduce distortions in the tax system.
“No business community pays VAT. The person who pays the VAT is the consumer,” he said, stressing that businesses only act as collection agents for the state.
He urged businesses to register, file returns, pay taxes, and declare income honestly, adding that these obligations remain unchanged despite the reforms. He also encouraged consumers to insist on VAT invoices, warning that transactions without them are incomplete and unlawful.
Similarly, Daniel Nuer, Technical Adviser at the Ministry of Finance, said while government has introduced a more business-friendly framework, taxpayers must also play their part to fully benefit from the reforms.
“Taxpayers should stop hiding behind informality as the system is being restructured to bring more taxpayers into the net fairly and transparently,” he said.
He added that government has moved away from price controls under the free market system, noting that market dynamics will ultimately determine how much of the tax relief benefits are passed on to consumers. He encouraged consumers to stay informed and respond accordingly.
Beyond tax reliefs, the discussion also touched on VAT digitalisation, electronic invoicing, registration thresholds, foreign exchange gains and losses, and the planned review of Ghana’s Income Tax, Customs, and Excise laws as part of broader efforts to modernise and strengthen the country’s tax system.