The recent downward adjustment of the Value Added Tax (VAT) is easing pressure on consumers, saving households about GH¢6.5 billion due to the drop in prices of goods and services, the Ghana Revenue Authority (GRA), says.
Since the reforms took effect, the GRA says prices of goods and services have declined by about 1.9 per cent, following the reduction of the effective VAT rate to 20 per cent.
The Commissioner-General of the GRA, Anthony Kwasi Sarpong, speaking during a VAT compliance monitoring exercise at shopping malls in the Spintex enclave, indicated that the early signs of the reforms show the initiative is working as intended.
He explained that the changes include a reduction in the VAT rate, the removal of the COVID-19 levy, the decoupling of VAT, and higher thresholds for smaller businesses.
According to Sarpong, their checks at several shops showed businesses had adjusted their systems and were applying the new VAT rates.
Speaking with some shoppers, the GRA boss said they confirmed the growing satisfaction with the reduced prices, reinforcing the government’s claim that the reforms are effectively putting money back in the coffers of the citizens.
He urged businesses to comply with the revised VAT framework voluntarily and to call on consumers to demand VAT invoices whenever they make purchases to ensure compliance is widely enforced.
He also highlighted the need to sustain compliance by both businesses and consumers, saying that is key to mobilise revenue for national development.
Responsible tax compliance, the GRA boss added, will support the government’s broader economic agenda of growth, job creation, and national transformation.
He said the government’s ability to generate effective domestic revenue is what will make President John Dramani Mahama’s vision for 2026 be realised.
Malls visited during the exercise, including Palace Mall, Melcom, Orca Décor, United Commercial Trading, and Palace Home Décor, confirmed that their systems had been recalibrated to reflect the new VAT regime.
Customers at the malls also welcomed the changes, saying the price reductions were already being felt at the tills.
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