Ghana’s Finance Minister, Dr. Cassiel Ato-Forson, has presented the 2026 Budget Statement and Economic Policy, outlining plans to enhance revenue mobilisation through reforms to the Value Added Tax (VAT) structure and strengthened compliance. The reforms aim to simplify the tax regime, making it more equitable for businesses, and broaden the tax base.
Key measures include consolidating multiple levies into the main VAT structure, reducing the effective VAT rate, removing the VAT Flat Rate Scheme, and increasing thresholds for small and micro businesses. The government prioritises fiscal discipline, focusing on improved tax collection, digital systems, and public education to ensure existing taxes are collected effectively.
The budget builds on previous tax reforms, such as repealing the Electronic Transfer Levy and abolishing certain withholding taxes. The government aims to achieve a primary surplus of 1.5% of GDP and safeguard long-term stability through these measures.
Ruth Abla ADJORLOLO
