Ghana has announced a comprehensive package of tax reforms in its 2026 budget, including significant changes to VAT, income tax, customs, and excise duty legislation.

VAT Reforms

The government will repeal the COVID-19 Health Recovery Levy and decouple the GETFund and NHIL levies from the VAT system. The VAT registration threshold increases substantially from GH¢200,000 to GH¢750,000, reducing compliance burden for smaller businesses.

The budget repeals VAT on mineral exploration and reconnaissance activities, while extending zero-rated VAT treatment for locally manufactured textiles until December 2028, supporting domestic manufacturing.

Legislative Restructuring

Ghana will undertake comprehensive reform of the Income Tax Act to address legal inconsistencies, simplify provisions, and align with international tax standards. The government will implement an Independent Tax Appeals Board (ITAB) to improve dispute resolution procedures.

The Customs Act will be reformed to align with international standards, simplify border procedures, reduce clearance times and compliance costs, and strengthen Ghana's trade competitiveness.

Excise duty legislation will be restructured to harmonize rates and broaden the tax base, with expanded coverage including carbon-intensive goods, plastics, and sugary beverages to promote public health and environmental sustainability.

Context

These reforms represent Ghana's most comprehensive tax system overhaul in recent years, addressing both revenue optimization and business competitiveness concerns while incorporating international best practices across multiple tax categories.