VAT Reforms: Government to raise VAT threshold, scrap tax on mineral exploration

The Minister of Finance, Dr Cassiel Ato Forson, has outlined key tax policy reforms aimed at supporting small businesses and revitalizing Ghana’s mining sector.

According to him, the measures include raising the Value Added Tax (VAT) registration threshold and abolishing VAT on mineral exploration and reconnaissance activities.

Presenting the 2026 budget in Parliament, Dr Ato Forson stated that the current VAT registration threshold has lost significant value since its introduction in 2015, placing an excessive burden on small and micro enterprises.

“Mr Speaker, the VAT registration threshold has declined in real terms from GH¢200,000 in 2015 to approximately GH¢48,000 in current values.

"This means that small and micro businesses that were exempt in 2015 are now compelled to register and charge VAT. This has placed an undue burden on them and increased the cost of administering VAT,” he said.

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He added that the planned increase in the VAT threshold is intended to ease compliance pressure on small businesses and simplify tax administration for both taxpayers and the Ghana Revenue Authority (GRA).

“The increase in the VAT threshold is expected to address this problem and make VAT administration simpler and easier to implement,” he added.

Dr Ato Forson further revealed that the government will abolish VAT on mineral exploration and reconnaissance, a tax he said has discouraged investment in the mining sector for nearly two decades.

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