Africa-Press – Ghana. Parliament has approved the Value Added Tax (VAT) Bill 2025, aimed at ensuring comprehensive tax reforms to enhance clarity, consistency, and legal certainty in the country’s VAT regime.
The new legislation, when assented by the President, will replace the current flat-rate system, with a single and coherent structure, which lawmakers believe would streamline compliance and reduce ambiguities in the tax framework.
A key provision in the legislation is the increase in the registration threshold for VAT-eligible businesses; a measure expected to exempt thousands of micro and small enterprises from VAT obligations.
Proponents of the bill argued that the reforms would modernise the tax system, ease administrative burdens for small businesses, and align Ghana’s VAT regime with international best practices.
Mr Alexander Afenyo-Markin, the Minority Leader, speaking on the floor of the House, cautioned that the revised framework could inadvertently impose additional taxes on medium and larger enterprises, with the potential to pass on costs to consumers.
He warned that the changes might place a heavier burden on the general public, particularly households already grappling with rising living costs.
Parliamentary approval of the VAT Bill 2025 marks a significant step in the government’s fiscal policy agenda.
Implementation details are expected to be rolled out in the coming months, with stakeholders closely monitoring its impact on businesses and consumers alike.
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