Commissioner-General for the Ghana Revenue Authority (GRA), Mr. Anthony Sarpong, has expressed confidence in the country’s Value Added Tax (VAT) reforms saying that early indicators point to strong compliance and positive impacts on both consumers and revenue generation.
Speaking to the media after appearing before Parliament Appointment Committee to respond to the Report of the Auditor-General on the management of Petroleum funds for the period of 1 January 2024 to 31 December 2024,
Mr. Sarpong revealed that the VAT reform is one of the comprehensive measures being implemented in close collaboration with the Minister of Finance to improve VAT collection.
He explained that the revised VAT framework includes a reduction in the VAT rate, the abolition of the COVID-19 levy, the removal of the VAT coupling mechanism, and an increase in the VAT registration threshold for small businesses.
According to him, preliminary monitoring exercises show encouraging levels of compliance among retailers, with many shops successfully adjusting their systems to reflect the new VAT rates.
He added that interactions with shoppers also indicate growing consumer satisfaction, as prices of some goods have already reduced following the implementation of the reforms.
Mr. Sarpong further noted that these developments support the Finance Minister’s earlier assertion that the VAT changes could return more than GH¢6 billion into the pockets of Ghanaians.
He emphasized that the GRA will continue its compliance and enforcement efforts to ensure that the reforms are sustained and fully integrated into business processes, while also strengthening VAT as a reliable revenue source for the government.
The commissioner-general additionally disclosed that signals from tax payments so far have been very positive, explaining that prior to submitting the bill to Parliament, extensive assessments were conducted to determine the likely revenue impact of the reforms.
According to him, the results showed revenue neutrality, which reassured the government that the reforms would not lead to revenue losses.
He explained that VAT, being a consumption tax, has strong growth potential as Ghana’s population continues to increase.
“The more we consume, the more VAT is generated,” he said.
He however stressed the need to strengthen VAT as a tax type and called on businesses and consumers to voluntarily comply with their tax obligations to help build the nation.
He urged consumers to always demand their VAT receipts whenever they make purchases, noting that this simple act ensures that taxes paid end up in government coffers for national development.
By:Mary Quartey
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