Finance Minister Dr. Cassiel Ato Forson has announced a series of tax reforms under the Value Added Tax (VAT) Act aimed at reducing the burden on Ghanaians and eliminating the cascading effects of certain levies.
Delivering the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24, Dr. Forson outlined major tax policy changes the Mahama administration intends to roll out to create a fairer, more growth-oriented tax system.
He indicated that the VAT reforms would be finalised by October 2025 and incorporated into the 2026 Budget.
“I would like to reassure Ghanaians that the COVID-19 Levy will be abolished, the Effective VAT Flat Rate will be reduced, the punitive and cascading effects of the NHIS Levy will be removed, and GETFUND will be removed. VAT Flat Rate will be removed, and a unified VAT Rate will be implemented,” Dr. Forson told Parliament.
He explained that these reforms are part of a broader strategy to implement prudent economic policies, boost domestic revenue mobilisation, accelerate structural reforms in public financial management, and reinforce Ghana’s monetary policy framework.
According to him, these efforts—together with measures to diversify the economy—are critical to restoring macroeconomic stability, rebuilding confidence, and easing financial pressure on ordinary citizens.
Dr. Forson expressed optimism that the planned tax measures would foster inclusive growth and ensure a more equitable and efficient tax system.
He further noted that a new VAT Bill will be prepared by October 2025 and submitted to Parliament in 2026 as part of the next Budget Statement.
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