The Ghana Revenue Authority (GRA) has assured that it remains confident of meeting the GH¢225 billion revenue target set for 2026, despite concerns that recent tax reforms could lead to a shortfall.
The assurance comes amid worries that the abolition of some COVID-19-related taxes and the reduction in the effective Value Added Tax (VAT) rate from 21.9 per cent to 20 per cent, alongside an increased VAT registration threshold, could affect government revenue.
Speaking to journalists after appearing before Parliament’s Public Accounts Committee, the Commissioner-General of the GRA, Anthony Sarpong, said the authority is pursuing several measures to protect revenue while ensuring the reforms benefit consumers.
Mr Sarpong said early indications show that businesses and consumers are responding positively to the new VAT regime.
“We believe that the reforms have been taken well by businesses and Ghanaians,” he said.
He explained that the authority has been actively monitoring compliance on the ground. “As of last week, with market visits as well as visiting some of the major shops, we are satisfied that most of the businesses have implemented the new VAT requirements.”
According to him, the changes are already delivering relief to households while still supporting government revenue objectives.
“That in itself is ensuring that consumers can benefit from the abolition of the levy, as well as ensuring that the government’s intention to make sure that the abolishment, which returns close to about GH¢6 billion to households, has begun,” he said.
Mr Sarpong said the GRA will continue its enforcement and education efforts to ensure the reforms are sustained.
“We’re going to continue with the compliance and enforcement to ensure that these reforms stick and they become part of our processes. At the same time, we will ensure that we use the VAT tax type to raise the needed revenue to support the government’s agenda for 2026 and beyond.”
Despite the concerns raised about possible revenue losses, the Commissioner-General expressed strong confidence in the authority’s ability to deliver on its mandate.
“Let me say that the annual target that has been announced by the minister in the 2026 budget is GH¢225 billion. We at the GRA, this is our core mandate, so we are poised to make sure that right from the beginning of this year, we are working effectively to deliver on this revenue mobilisation.”
He said that revenue generation remains critical to national development and the government’s policy agenda.
“We believe that revenue mobilisation is the lifeblood of our national development, and without it, the vision of the president will not be achieved,” he said.
Mr Sarpong added that the GRA is not only aiming to meet the target but is also working towards exceeding it.
“We are poised to achieve this revenue and to ensure that we are even able to exceed it in a manner that allows the ministry and the government to deliver on the mandates they have presented to Parliament for the development of the nation,” he said.
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