GRA says it’s confident of hitting its GH¢225 billion target for 2026, despite worries surrounding recent tax reforms

The Ghana Revenue Authority (GRA) says it’s confident about hitting the GH¢225 billion revenue target for 2026, even though some worry that recent tax changes might cause a shortfall.

The reassurance comes amid concerns that scrapping certain COVID-19-related taxes, lowering the effective Value Added Tax (VAT) rate from 21.9% to 20%, and raising the VAT registration threshold could impact government revenue.

After meeting with Parliament’s Public Accounts Committee, GRA Commissioner-General Anthony Sarpong told journalists that the authority is taking various steps to safeguard revenue while making sure the reforms work in favor of 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 said the authority has been keeping a close eye on compliance in the field. “As of last week, after visiting markets and some major shops, we’re happy to see that most businesses have put the new VAT rules in place.”

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’re on track to hit this revenue target and even go beyond it, making sure the ministry and government can follow through on the mandates they’ve presented to Parliament for the nation’s development,” he said.