Here’s a brief summary of the key tax reforms announced in Ghana’s 2026 Budget presentation by Finance Minister Dr. Cassiel Ato Forson:
Main tax reform highlights:
- Abolition of pandemic-era taxes:
- The COVID-19 Health Recovery Levy was abolished to provide relief to households and businesses, expected to return billions of cedis to the economy.
- Value Added Tax (VAT) overhaul:
- The effective VAT rate was reduced ( cut to around 20% from 21.9%).
- Input tax deductibility was restored for GETFund and NHIL levies, lowering costs for businesses.
- VAT on mineral exploration and reconnaissance was removed to stimulate investment in the mining sector.
The VAT registration threshold was raised significantly, easing the burden on small businesses.
Zero-rating on locally manufactured textiles was extended to support the local industry.
- Tax administration reforms:
- Plans to modernise tax collection with digital tools such as Fiscal Electronic Devices.
- A VAT reward scheme will be introduced to encourage compliance by rewarding consumers who demand VAT receipts.
Overall intention:
The reform package aims to simplify the tax system, make it more equitable and business-friendly, boost compliance, and attract investment while also supporting economic growth and easing costs for individuals and firms