By Elsie Appau-Klu ESQ
Ghana’s Parliament has abolished multiple tax laws since 2024 in a move aimed at simplifying the tax system, reducing the financial burden on taxpayers, and promoting economic growth.
Some of the notable taxes that have been removed include:
- COVID-19 Health Recovery Levy: Abolished to ease financial pressure on individuals and businesses, as COVID-19 is no longer considered a public health emergency. The removal is expected to return about GH¢3.7 billion to individuals and businesses in 2026 alone.
- VAT Flat Rate: Cancelled to unify the VAT regime and simplify compliance processes for taxpayers.
- Electronic Transfer Levy (E-Levy): Its abolishment is expected to revive digital financial services and benefit small businesses and individuals relying on mobile payments.
- Emissions Levy: Removed as part of environmental sustainability efforts.
- VAT on Insurance: Specifically on life and motor insurance, abolished to make insurance more accessible and affordable.
- Betting Tax: Repealed to promote responsible gaming among young adults and address governance concerns.
- Withholding Tax on Lottery Winnings: Cancelled to support youth participation in the gaming industry.
The government says these changes aim to simplify tax administration, improve compliance, stimulate economic growth, and make Ghana’s tax system more attractive to investors.
The Value Added Tax Act, 2025 (Act 1151) introduced further reforms, including a unified VAT rate of 15% and an increased VAT registration threshold from GH¢200,000 to GH¢750,000 to benefit micro and small enterprises. The GETFund Levy and NHIL are now deductible as input VAT, helping reduce business costs, especially for small enterprises.
The abolitions were part of the government’s RESET Agenda to reduce the tax burden on citizens and residents, and are expected to improve fairness, simplicity, and growth-orientation in Ghana’s tax system.
Currently, tax compliance remains a challenge, with only about 29% of eligible taxpayers paying VAT and about 19% paying income tax. Ghana collects roughly 29% of income tax on imports through customs. The government aims to improve participation through public education and simplification of tax processes.
Taxes account for over 60% of government revenue, funding essential services such as healthcare, education, security, justice, and infrastructure. Citizens’ participation in taxation enhances revenue mobilization, economic growth, and public accountability.
The Ghana Revenue Authority, through the Sustained Tax Education Program, continues to educate citizens on tax obligations and encourages them to contribute to national development. Citizens are advised to ensure they are not charged abolished taxes when making purchases.
Elsie Appau-Klu ESQ is a lawyer and technical advisor to the Commissioner-General of the Ghana Revenue Authority. She also serves as the National Coordinator for the Sustained Tax Education Program and chairs the Modified Taxation Scheme Implementation Committee.
