New VAT a game changer for Ghana’s revenue collection - GRA Commissioner General

The Commissioner General of the Ghana Revenue Authority, Anthony Kwasi Sarpong, has assured that beginning from today, 1st January 2026, the Ghana Revenue Authority is charging the new VAT rate of 20 percent instead of the old rate of 21 percent.

He explains that the move is aimed at making VAT payment simple for businesses and service providers as well as boosting revenue mobilisation.

Speaking to Joy Business in an interview, he said, "Based on the many reforms and adjustments made to the tax law in order to simplify payment, it will be a game changer for revenue mobilisation in the short term."

“To bring parity to the system, we have removed the flat rate so that everyone consuming will be eligible to pay the standard rate. We believe that with a lot of administrative measures and reforms in the new system, VAT is going to be the game changer as far as revenue generation in this country is concerned, and we are looking forward to working with businesses to equip taxpayers to ensure that we understand the tax obligation on VAT and every consumer in this country will demand a VAT receipt whenever making a purchase,” he added.

VAT rate cut to 20%, COVID Levy gone as new tax act takes effect January 2026

This follows the passage and subsequent presidential assent given to the VAT Bill 2025.

This development marks a significant overhaul to simplify the country’s tax system, consolidate laws, abolish the COVID-19 levy, and improve compliance through digitisation in revenue administration.

The law is also aiming for greater fairness and economic growth as the country makes progress to enhance domestic tax mobilisation.

The reform is part of the recommendations from the International Monetary Fund to reduce bureaucracies in tax collection.

Key changes include unifying the flat-rate system, reducing effective rates, allowing deduction of GETFund/NHIL as input tax, and boosting revenue efficiency.

This will also include the deployment of digital channels like the E-VAT for accurate collection.

Meanwhile, in a New Year message to the country, the Commissioner General stressed collaboration between the business community and tax officials to ensure a mutual agreement on enhancing revenue for development.

ID/