The Ghana Revenue Authority (GRA) says recent reforms to the Value Added Tax (VAT) regime are already delivering relief to consumers, with an estimated GH¢6.5 billion effectively returned to households through lower prices.

According to the Authority, prices of goods and services have fallen by about 1.9 per cent since the implementation of the VAT changes, following the reduction of the effective VAT rate to 20 per cent.

The Commissioner-General of the GRA, Anthony Sarpong, disclosed this during a VAT compliance monitoring exercise at major shopping malls within the Spintex enclave. He said early indicators suggest the reforms are achieving their intended purpose of easing the cost-of-living burden on consumers.

Mr Sarpong explained that the VAT reforms include a reduction in the VAT rate, the removal of the COVID-19 levy, the decoupling of VAT, and an upward adjustment of thresholds for small businesses. These measures, he noted, were designed to simplify the tax system while improving affordability for households.

He said inspections at several retail outlets showed that businesses had updated their systems to reflect the new VAT structure and were applying the revised rates accurately. Engagements with shoppers during the exercise also pointed to growing public satisfaction, with many confirming that price reductions were already being felt at the point of sale.

The GRA boss used the opportunity to urge businesses to voluntarily comply with the new VAT framework, stressing that compliance is essential to sustaining the gains from the reforms. He also called on consumers to insist on VAT invoices for every purchase, describing it as a critical tool in strengthening tax enforcement.

Mr Sarpong emphasised that consistent compliance by both businesses and consumers is vital for domestic revenue mobilisation, which underpins national development. He said the government’s broader economic agenda—focused on growth, job creation and structural transformation—depends largely on the country’s ability to generate sufficient internal revenue.

He added that President John Dramani Mahama’s economic vision for 2026 is closely tied to effective tax administration and responsible civic participation in the tax system.

Retail outlets visited during the monitoring exercise, including Palace Mall, Melcom, Orca Décor, United Commercial Trading and Palace Home Décor, confirmed that their billing systems had been recalibrated to reflect the revised VAT regime. Shoppers at the malls also welcomed the changes, noting that the lower prices were already making a difference in their daily spending.