New Value Added Tax (VAT) reforms introduced by the Ministry of Finance have taken effect today, January 1, 2026, as part of Government’s broader economic reset agenda.
Under the reforms, the COVID-19 Health Recovery Levy has been abolished, a move the Ministry says will return about GH¢3.7 billion to individuals and businesses in 2026 alone.
The VAT rate has also been reduced to 20 per cent, aimed at easing the tax burden on households and businesses.
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In addition, the GETFund and National Health Insurance Levy (NHIL) are now input-output deductible, a change expected to reduce the cost of doing business by about five per cent.
The threshold for VAT registration for businesses dealing in goods has been increased from GH¢200,000 to GH¢750,000 in annual turnover. Government says this will reduce the compliance burden on small businesses.
The VAT Flat Rate Scheme has also been abolished and replaced with a unified VAT structure to improve transparency and efficiency in the tax system.
Altogether, the Ministry of Finance says the VAT reforms are expected to return nearly GH¢6 billion to businesses and households in 2026, describing the measures as tax relief in action to support growth, job creation and economic transformation.
