Ghana’s Finance Minister Dr. Cassiel Ato Forson has confirmed a comprehensive VAT reform bill will be presented to Parliament in October 2025, aiming to simplify taxation and support businesses.
The plans include abolishing the COVID-19 Health Recovery Levy and consolidating multiple levies into a unified structure.
The Ghana Union of Traders Association (GUTA) welcomed the move, with President Dr. Joseph Obeng stating it addresses long-standing demands for a less burdensome system. “Removing the COVID levy and merging levies will enhance clarity and compliance,” he noted.
However, GUTA raised significant concerns about eliminating the VAT flat rate scheme, which currently aids traders unable to claim input VAT from unregistered suppliers—common in cross-border trade with Nigeria and Dubai. Dr. Obeng warned that replacing it solely with the standard rate could undermine practicality.
The association also opposed increasing VAT registration thresholds, arguing it would distort competition in major hubs like Opera Square or Abossey Okai. “Exempting smaller traders beside registered businesses penalizes compliance and breeds unfairness,” Obeng asserted. GUTA instead proposed a dual system retaining the flat rate while ensuring uniform obligations in high-density markets.
While endorsing the reform’s intent, Dr. Obeng urged continued stakeholder talks to balance simplicity with operational realities: “Reforms must safeguard trader competitiveness and sustain government revenue.” The bill is positioned as a key pillar of Ghana’s post-COVID tax modernization and private-sector growth agenda.
