Ghana Parliament Passes VAT Reform, Rate Reduced to 20%

Ghana’s parliament on 29 November 2025 passed the Value‑Added Tax (VAT) Bill into law. The legislation reduces the effective VAT rate from 21.9 % to 20 %.

The bill also raises the taxable‑enterprise threshold from GHS200,000 (about Rp297 million) to GHS750,000 (about Rp1.11 billion), easing compliance for micro and small businesses. It eliminates VAT on mineral exploration, extends the 0 % VAT rate for domestically produced textiles until December 2028, and is projected to save the economy roughly GHS6 billion.

Authorities say the reform will simplify tax compliance without creating new burdens for businesses or consumers and aligns Ghana’s VAT system with international best practices. The measures are expected to boost the competitiveness of the garment sector and revive mining investment.