Executive summary

On 13 November 2025, Ghana's Minister for Finance (the Minister) presented to Parliament the 2026 Budget Statement and Economic Policy of the Government of Ghana (GoG) on the authority of the President of the Republic in accordance with Articles 179 of the Constitution, 1992.

The Minister stated that GoG's objectives were, in part, to consolidate macroeconomic stability, accelerate economic transformation and job creation as well as strengthen security and the social sector for inclusive growth.

Regarding taxation, the GoG aims to improve tax compliance, expand the tax base and deploy digital tools to track and tax e-commerce, cross-border transactions and the extractive sector.

Proposed tax measures

The key tax measures proposed in the 2026 Budget are expected to come into force on 1 January 2026 unless a different commencement date is otherwise provided. Related details are highlighted below.

Value-added tax (VAT) reforms

After completing GoG's engagements for technical assistance with the International Monetary Fund (IMF) and nationwide consultation with businesses and stakeholders in September 2025, the GoG has finalized plans for the following reforms to take place:

• Abolishing:
  
  • COVID-19 Health Recovery Levy (Covid-19 Levy)
  • VAT on mineral reconnaissance and exploration
• Reducing the effective VAT rate from 21.9% to 20% resulting from the decoupling of GET Fund and NHIL levies from the VAT base and the abolishment of the Covid-19 Levy
• Raising the VAT registration threshold from GHS 200,000 to GHS 750,000
• Extending sunset clause for zero-rating of the supply of locally manufactured textiles from 2025 to 2028
• Not extending the sunset clause with respect to zero-rating of locally assembled vehicles under the Ghana Automative Development Programme

The change in the VAT rate necessitates a timely recalibration of companies' invoicing systems to ensure smooth business operations. However, the GoG must assess the feasibility of full implementation by 1 January 2026 as businesses may require additional time for necessary technology updates. The abolition of VAT on mineral reconnaissance and prospecting is expected to lower mining operation costs and attract new investments. Further, the increase in VAT registration is expected to reduce the compliance burden for affected small and medium-sized enterprises (SMEs), allowing them to benefit from simplified modified taxation. However, these SMEs will still incur VAT as a cost in their operations, highlighting the need for intensified tax education to clarify the differences between modified and standard taxation. Additionally, extending zero rating for local textiles aims to support the domestic textile and garment industry, enhancing competitiveness and promoting job creation.

The absence of an extension of the zero-rating of locally assembled vehicles as per the second schedule to the VAT Act implies that this incentive will expire on 31 December 2025. Therefore, consumer's cost for these vehicles will likely increase, and the ability of assemblers within this space to compete favorably with importers of similar vehicles will be affected.

Modernization of VAT administration

The Minister indicated plans to operationalize digital VAT systems to improve VAT administration. Specifically, the GoG plans to roll out Fiscal Electronic Devices (FEDs) to monitor taxable transactions by taxable persons, particularly those within the retail sector, and launch a VAT reward scheme to incentivize the public to demand VAT receipts when transacting business. The Ghana Revenue Authority (GRA) will embark on a comprehensive public education campaign and phased rollout of planned initiatives. The effort being made by the GoG is expected to capture VAT on e-commerce and nonresident suppliers and improve real-time compliance while reducing underreporting at the Point of Sales (PoS).

The proposed VAT reforms aim to expand the tax net and close revenue leakages in the administration of indirect taxes. This modernization may necessitate that businesses prepare for stricter reporting requirements as the GoG introduces digital tax collection for cross-border platforms, implements FEDs and launches a VAT reward scheme to enhance taxpayer compliance. During the phased rollout, companies may encounter transitional issues, such as system adjustments, which will require closer engagement with the GRA.

Review of core tax laws

According to the Minister, commencing 2026, there will be a comprehensive review of Ghana's core tax laws with specific references to the Income Tax Act, 2015 (Act 896), Customs Act, 2015 (Act 891), and Excise Duty Act, 2014 (Act 878). The overall aim is to align them to global best practices, promote equity and competitiveness, simplify compliance and enhance revenue generation.

Income Tax Act

In respect of Act 896, the GoG proposes a comprehensive overhaul to keep up with global tax developments and the digital transformation of the economy. The reforms are aimed at aligning the Income Tax Act with Organisation for Economic Co-operation and Development (OECD)/G20/African Tax Administration Forum (ATAF) developments. The reform seeks to strengthen provisions in 2026 to tax nonresidents with significant digital or economic presence, pending full reform. Its implementation will involve stakeholder engagement and a draft bill to Parliament in the 2027 budget. To ensure that the GoG receives its fair share of global income and to enhance its ability to finance national priorities without placing excessive burdens on domestic taxpayers, the GoG intends to deepen its involvement in the United Nations (UN) Framework on International Tax Cooperation and BEPS initiatives to position itself to fairly tax nonresident multinationals and digital companies.

With the planned overhaul of Act 896 to align with global best practices, the GRA needs to engage all qualifying stakeholders promptly to ensure a robust tax system. The introduction of a digital service income tax through the Significant Economic Presence Rule is set to begin in 2026, reflecting the GoG's commitment to taxing the digital economy, particularly targeting nonresident companies that generate income from transactions with persons in Ghana, although it remains unclear if a de minimis turnover threshold will be established to determine applicability.

Excise Duty Act

The parameters of the excise reforms to be determined include the following:

• Expand excise regimes to include carbon-intensive products, plastics, and sugary beverages
• Harmonize excise rates and broaden the tax base
• Ensure that excise policies encourage healthful living, environmental protection and fiscal responsibility

The review implies that businesses, particularly those dealing in carbon-intensive products, plastics and sugary beverages, may face new or increased taxes. The broadening of the tax base and harmonization of tax rates could impact pricing, operations and compliance requirements for these businesses. As businesses await the full reform, measures should be implemented to realign activities in preparation for a smooth transition once the reforms are enacted. Additionally, businesses will need to engage with the GoG to ensure that any changes reflect broader business interests while also addressing the needs of other stakeholders.

Customs Act

The parameters of the customs reforms are intended to:

• Simplify border procedures
• Reduce clearance times
• Lower compliance costs for businesses

If achieved, the simplification of customs procedures through these reforms will enhance revenue mobilization and prevent revenue leakages to ports within the West Africa region. The adoption of risk-based inspections and trusted trader programs will facilitate smoother customs processes. To support these reforms, the GRA must engage with the business community and industry experts to enhance clarity, create a robust customs process and ensure certainty for taxpayers.

Strengthening tax administration, compliance and enforcement

The Independent Tax Appeal Board (ITAB) is ready to operate, as the 21-day constitutional threshold for the Revenue Administration (Independent Tax Appeal Procedure) Regulations, 2025, has passed. It is important to note that the implementation of these regulations establishes a quasi-judicial arbiter independent of the GRA to provide a fair mechanism for resolving tax disputes in Ghana.

The GRA is expected to complete the cleansing of its taxpayer registry and launch the first stage of the Integrated Tax Administration System (ITAS) by the end of December 2025.

Additionally, the Minister highlighted that the GoG is proposing several measures to improve oversight and accountability in cross-border shipments. These measures include (1) the deployment of AI-driven pre-arrival inspections for all shipments to ensure accurate declaration and assessment of goods before they reach the ports; (2) the establishment of a special recovery unit and implementation of an inter-agency audit focused on import-related transfers; and (3) the matching of foreign exchange transfers with verified import data by the Bank of Ghana to ensure that all transactions are legitimate and properly documented.

Businesses should prepare for a more intensive compliance environment as the GoG implements various revenue administrative reforms. The enforcement of tax laws by the GRA is expected to increase, as the GoG anticipates higher tax revenues despite the abolition and reduction of some taxes to alleviate the cost of doing business in Ghana.

The proposed customs revenue assurance measures aim to enhance transparency and accountability in port processes, potentially raising revenue without introducing new tax handles. For genuine taxpayers, these initiatives could foster a fair tax system that ensures accurate declaration and taxation of all imports.

Additionally, the operationalization of the Independent Tax Appeal Board (ITAB) offers a relatively impartial platform for tax dispute resolution, providing a less expensive and less time-consuming alternative to court processes.

Tax stamp regime for refined edible oils

The Minister indicated that there will be a tax stamp regime for refined edible oils modeled after the beverage industry. This initiative aims to reduce smuggling and under-declaration, ensuring fair taxation and supporting domestic producers.

The tax stamps are part of a broader strategy to enhance compliance and revenue generation in Ghana's agricultural sector. By implementing this system, the government seeks to promote self-sufficiency and strengthen the oil palm industry, which is essential for job creation and economic growth. Overall, the tax stamp initiative is a vital step toward developing a sustainable and competitive oil palm sector in Ghana.

Airport development fee

The GoG, through the Ghana Airport Company Limited, plans to implement an airport development fee to fund several key projects: the rehabilitation of Sunyani Airport, the construction of a new airport in Bolgatanga, and the development of a multi-purpose car park and a connecting concourse between Terminals 2 and 3 at Kotoka International Airport.

This proposed fee will increase available funds for government projects to be undertaken in Ghana's aviation industry. The projects will enhance infrastructure in the aviation industry thereby facilitating business activities, trade and tourism. However, users of airports who will be required pay this fee will be faced with additional financial burden.