Parliament Greenlights VAT Tax Reform Bill 2025
New VAT Bill aims to streamline taxation and ease compliance, but Minority warns of potential cost burdens on businesses and consumers
- Parliament approves the VAT Bill 2025 to overhaul and simplify Ghana’s VAT system
- New framework raises registration thresholds, exempting many small and micro businesses
- Minority cautions it may increase costs, while Deputy Finance Minister insists it eases compliance
Parliament has passed the Value Added Tax (VAT) Bill 2025, a landmark move aimed at overhauling Ghana’s VAT system to improve clarity, consistency, and legal certainty.
The legislation replaces the existing flat-rate VAT system with a single, streamlined structure, while also raising the registration threshold for VAT-eligible businesses. This adjustment is expected to exempt many micro and small enterprises from VAT obligations.
During parliamentary debate, Minority Leader Alexander Afenyo-Markin warned that the revised VAT framework could lead to higher taxes on businesses and potentially increase the financial burden on consumers.
Deputy Finance Minister Thomas Nyarko Ampem countered these claims, asserting that the new VAT system is designed to simplify compliance rather than impose additional costs on businesses or the public.
The passage of the bill marks a significant step in Ghana’s ongoing tax reform agenda.
