Recent tax reforms introduced by the Ghana Revenue Authority are expected to cost government more than GH₵6.5 billion in the short term as part of efforts to support businesses and expand the tax base.
Commissioner General, Anthony Kwasi Sarpong in an intervidew with Metro TV on the Good Morning Ghana show hosted by Moro Awudu on April 13 said the changes include a reduction in the VAT rate from 21.9 percent to 20 percent and the removal of the COVID levy.
He explained that the reforms also eliminated the cascading effect in VAT, which previously increased costs for businesses without offering refunds.
In addition, the VAT registration threshold has been raised from 200,000 to 750,000 in annual turnover, allowing small businesses more room to grow without the burden of complex tax compliance.
Sarpong said although these measures will initially reduce government revenue, they are expected to stimulate economic activity and improve long term tax collection.
He emphasised that strengthening the tax system and making it more business friendly remains central to efforts to increase domestic revenue without introducing new taxes.
