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In an effort to lessen the burden on Ghanaians and do away with the cascading effects of some levies, Finance Minister Dr. Cassiel Ato Forson has announced a number of tax reforms under the Value Added Tax (VAT) Act.
On Thursday, July 24, Dr. Forson gave Parliament the 2025 Mid-Year Budget Statement, outlining significant tax policy changes the Mahama administration plans to implement to establish a more equitable and growth-oriented tax structure.
He said that by October 2025, the VAT amendments would be completed and included in the 2026 budget.
“I would like to reassure Ghanaians that the GETFund would be eliminated, the COVID-19 Levy will be eliminated, the NHIS Levy’s punitive cascade consequences will be eliminated, and the Effective VAT Rate will be lowered. A uniform VAT rate will be introduced, and the VAT Flat Rate will be eliminated,” Dr. Forson said Parliament.
He clarified that these changes are a part of a larger plan to strengthen Ghana’s monetary policy framework, improve domestic revenue mobilisation, implement sound economic policies, and expedite structural reforms in public financial management.
He asserts that these initiatives—along with steps to diversify the economy—are essential to re-establishing macroeconomic stability, boosting confidence, and relieving the financial strain on regular people.
In addition to ensuring a more equitable and effective tax system, Dr. Forson expressed hope that the proposed tax measures would promote inclusive growth. The next Budget Statement would include a new VAT Bill that will be developed by October 2025 and presented to Parliament in 2026, he added.
