Ghana’s recent tax updates have begun to offer relief to businesses, a development expected to slowly reduce costs for consumers. PwC Ghana’s tax experts confirmed these changes, highlighting a shift towards a more business-friendly tax environment.
These significant changes include the abolition of several levies. Ghana has repealed the Emissions Levy, the COVID-19 Health Recovery Levy, and the E-levy. These specific changes directly impact business pricing structures and ultimately the cost of goods and services for consumers.
These tax reforms fit into Ghana's broader economic strategy to foster growth and attract investment. Following a period of aggressive tax collection, the government is now aiming for a more balanced approach. Data from tax practices suggests this aims to simplify taxation and ease the burden on businesses, which could stimulate economic activity.
Mary Kwarteng Darko, an Associate Director in PwC Ghana’s tax practice, noted the welcoming nature of these changes. She stated, “All of these changes are definitely welcome.” Darko added that businesses are “still feeling some of the impact of the price reduction from these levies that have been abolished.”
Decision-makers will monitor how businesses pass these cost savings onto consumers over time. The government's goal is to ensure the benefits of these reforms are widely felt. Markets will watch for sustained price reductions across various sectors.
The tax updates, implemented over the past year, include both immediate and phased changes. Two major levies, the Emissions Levy and the COVID-19 Levy, were formally repealed in April 2025. VAT reforms also took effect from 1 January 2026, simplifying computation by applying VAT and levies on the same base.
However, not all changes provided relief. The Special Import Levy and the Growth and Sustainability Levy, initially expected to expire, have both been extended to 2028. For gold mining companies, the Growth and Sustainability Levy also increased to 3% during 2025 before reverting to 1% this year, alongside a new royalty structure.
These mixed changes affect long-term business planning, leading to varied sentiments within the business community. Darko acknowledged that views from businesses are “mixed” due to ongoing concerns. These concerns include complexities surrounding VAT registration thresholds and the treatment of services for free zone entities under the new VAT law.
Businesses are also seeking greater clarity and consistency from the Ghana Revenue Authority (GRA) and policymakers. They want reforms for the Income Tax, Customs Duty, and Excise Duty Acts. Darko explained, “because of the many amendments, it has been difficult to keep track and know at every point in time what the current state of the law is.”
The GRA, meanwhile, expects improved compliance from businesses in return for these reliefs. Dr. Dominic Naab, Acting Head of VAT at the GRA, emphasized that simplified VAT systems aim to boost compliance, increase revenue, and reduce market distortions. He reminded businesses they collect VAT on behalf of the state, urging them to register, file, pay, and disclose income honestly.
Daniel Nuer, Technical Adviser at the Ministry of Finance, reiterated the government’s commitment to a business-friendly framework. He stressed that taxpayers must fulfill their obligations to fully benefit from the changes. Nuer urged consumers to insist on VAT invoices, warning that incomplete transactions are illegal without them.
Beyond these immediate changes, discussions also covered VAT digitalisation and electronic invoicing. The planned review of Ghana’s Income Tax, Customs, and Excise laws continues. These efforts aim to modernize and future-proof the nation’s tax system for sustainable economic development.