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Nearly two years after Ghana implemented sweeping tax reforms, businesses, and financial professionals are still adjusting to the operational and fiscal realities brought by the changes. Introduced on January 1, 2023, the amendments to Ghana’s tax laws, including updates to the Electronic Transfer Levy (E-Levy), the Revenue Administration Act, and Value Added Tax (VAT), were designed to enhance revenue mobilization in the wake of rising fiscal pressures.
Reduced E-Levy, but Tighter Enforcement
Perhaps the most notable change for everyday Ghanaians was the reduction of the E-Levy from 1.5% to 1%, a move seen as a partial concession to public backlash. However, the regulatory environment around it became stricter. The Ghana Revenue Authority (GRA) now requires all E-Levy charges to be remitted within 24 hours, and only GRA-registered agents can operate under the levy’s framework.
The 24-hour remittance rule created logistical and liquidity challenges for mobile money operators and fintech platforms. Several market participants noted the increased need for compliance automation tools to manage real-time reporting and fund transfers.
Revenue Monitoring Now Mandated by Law
A more structural shift occurred under the Revenue Administration (Amendment) Act, 2022. The Commissioner-General of the GRA was granted sweeping authority to implement monitoring systems to verify the revenue figures declared by taxpayers. Businesses refusing access to their systems or infrastructure now face a 5% penalty on gross annual revenue, which is a sharp deterrent, especially for high-revenue enterprises.
These provisions also override previous confidentiality and legal privilege protections, raising concerns among auditors and multinational corporations operating in Ghana. Critics argue that while tax evasion must be addressed, the broad reach of these powers may erode investor confidence.
VAT Expansion and Sector Reclassification
The VAT increase from 12.5% to 15% was just the beginning. Amendments to the VAT Act eliminated exemptions on a wide range of imported goods previously considered educational or informational, including textbooks, magazines, periodicals, and architectural plans.
More controversially, the reform explicitly removed betting, gaming, and chance-based activities from the scope of VAT altogether, signaling a policy shift likely intended to align with upcoming gaming legislation.
Additionally, the VAT Certified Invoicing System (E-VAT) now falls under the discretion of the GRA Commissioner-General. Businesses are transitioning into the system in phases, but delays and technical issues have been common.
Impact on Business Climate
While these tax reforms have helped Ghana stabilize its revenue base and strengthen fiscal oversight, the cumulative effect has been increased compliance costs and operational complexity for many businesses. Tax professionals cite ongoing challenges in integrating new reporting standards with legacy accounting systems, particularly for SMEs.
“The intention is good closing revenue gaps and expanding the tax net, but the pace and scope of implementation caught many firms off guard,” said Ama Serwaa Asante, a senior tax advisor at a leading Ghanaian consulting firm. “In 2025, companies are still fine-tuning compliance systems that should have been ready in 2023.”
As Ghana looks ahead to digital transformation and fiscal consolidation, how effectively these amendments are enforced and perceived may shape the trajectory of private-sector confidence for years to come.
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