The Ghana National Chamber of Commerce and Industry (GNCCI) says the government’s complete overhaul of the Value Added Tax system has finally brought an end to a taxing structure businesses have battled with for years.
Chief Executive Officer Mark Badu Aboagye described the reform as long overdue relief from what he called a “frustrating and costly” regime that increased compliance burdens for companies.
According to him, the Chamber had spent the last three to four years repeatedly appealing for a simplified VAT system. Each year, they made the same recommendations to the national budget: reform the VAT, simplify the process, and reduce the effective rate. Though the government hinted at changes last year, the implementation, he noted, took nearly a full year to materialise.
He said the 2025 budget has finally delivered the clarity and fairness businesses were waiting for. For GNCCI members, the biggest challenge had always been the complexity of the old structure.
Businesses Struggled With Complex VAT Computations
Mr Badu Aboagye explained that the previous VAT arrangement forced businesses to navigate Standard VAT alongside straight-line levies—making even basic computation difficult. He stressed that companies were not avoiding payment; the system itself was too complicated.
The straight-line levies, such as the NHIL, GETFund Levy, and the “Almighty Covid levy,” he said, were especially problematic because businesses could not claim input VAT on them. As a result, they became unavoidable direct costs that inflated operational expenses.
Consolidation Brings Major Relief
The GNCCI CEO praised the consolidation of these levies into the Standard VAT, saying the shift now allows firms to claim input VAT across the board. This, he stated, eliminates what had been a significant cost burden for many companies.
He believes the reform will influence pricing decisions and reduce pressure on businesses. He added that how prices adjust under the new system will form a major part of public discussion in the coming months.
A Simpler, Clearer VAT Regime
Under the new structure, businesses will pay a flat 20%. Mr Badu Aboagye said companies now clearly understand how to compute output VAT, input VAT, and the final amount due to the government. This transparency alone, he noted, removes a major obstacle that has weighed down businesses for years.
