The Ghana Revenue Authority (GRA) says recent changes to the Value Added Tax (VAT) system are already easing the cost-of-living burden on households, with an estimated GH¢6.5 billion returned to consumers through lower prices.
According to the Authority, prices of goods and services have dropped by about 1.9 per cent since the reforms took effect, following the reduction of the effective VAT rate to 20 per cent.
Commissioner-General of the GRA, Anthony Sarpong, disclosed this during a VAT compliance monitoring exercise at major shopping malls in the Spintex enclave, where officials assessed how businesses were implementing the revised tax regime.
Mr Sarpong said early indications show the reforms are achieving their intended impact, with many businesses already reflecting the lower VAT rates in their pricing.
The reforms, he explained, include reducing the VAT rate, removing the COVID-19 levy, decoupling VAT, and raising tax thresholds for smaller businesses to ease their compliance burden.
Checks conducted across several retail outlets showed that most businesses had updated their systems to apply the new VAT structure. Interactions with shoppers at malls also revealed growing satisfaction, as consumers confirmed that price reductions were beginning to be reflected at the tills.
Mr Sarpong said consumer feedback supports the government’s position that the VAT reforms are helping put more money back into Ghanaians’ pockets.
During the visit, the GRA boss urged businesses to comply voluntarily with the revised VAT framework and appealed to consumers to demand VAT invoices whenever they make purchases, describing this as a key tool for strengthening enforcement.
He stressed that sustained compliance by both businesses and consumers is critical to mobilising revenue for national development and to supporting the government’s broader economic goals, including growth and job creation.
Mr Sarpong added that President John Dramani Mahama’s vision for 2026 depends mainly on the country’s ability to generate adequate domestic revenue through responsible tax compliance.
Shopping centres visited during the exercise, including Palace Mall, Melcom, Orca Décor, United Commercial Trading and Palace Home Décor, confirmed that their systems had been recalibrated to reflect the new VAT regime.
Customers at the malls also welcomed the changes, saying the impact of the VAT reduction was already being felt in the prices of everyday goods.