Ghana Begins Comprehensive Review of VAT System to Boost Business Growth

The Government of Ghana has officially launched a comprehensive review of its Value Added Tax (VAT) regime as part of efforts to simplify the tax system and create a more business-friendly environment.

This significant policy initiative was confirmed during a recent high-level meeting between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group.

Speaking at the engagement, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, reaffirmed the government’s commitment to overhauling the VAT framework in partnership with global financial institutions.

“Our aim is to enhance efficiency and make the VAT system easier for businesses to comply with, while supporting revenue growth,” Dr. Forson said.

IMF Providing Technical Support for VAT Reform

Dr. Forson further revealed that a Technical Assistance Mission from the International Monetary Fund (IMF) is currently in Ghana, working closely with the Ministry of Finance and other relevant agencies to guide the review and reform process.

The Finance Minister acknowledged that Ghana’s current effective VAT rate of 21.9% — one of the highest across Africa — has long posed challenges for businesses, resulting in low compliance and operational inefficiencies.

A Step Toward a More Competitive Economy

This review forms part of Ghana’s broader economic reform strategy, aimed at boosting investor confidence, easing the tax burden on businesses, and fostering sustainable economic growth.

Stakeholders in the private sector and international development partners have welcomed the initiative, expressing hope that the new VAT structure will support innovation, entrepreneurship, and economic expansion.