VAT Rises 38% But Retail Sales Dip in November 2025 — Bank of Ghana Report

Consumer spending indicators posted a mixed performance in November 2025 compared with the same period in 2024, according to the January 2026 Monetary Policy Report by the Bank of Ghana.

VAT Collections Surge

Domestic VAT collections increased by 38.2% year-on-year to GH¢2.20 billion, up from GH¢1.59 billion recorded in November 2024.

Cumulatively, total domestic VAT for the first eleven months of 2025 rose by 24.6% to GH¢19.29 billion, compared with GH¢15.48 billion in the corresponding period of 2024.

The strong VAT performance signals improved consumption activity and possibly enhanced tax compliance.

Retail Sales Show Mixed Trend

Retail sales, however, declined by 10.5% year-on-year to GH¢284.43 million in November 2025, down from GH¢317.86 million in November 2024.

On a month-on-month basis, retail sales improved by 12.7%, rising from GH¢252.47 million in October 2025.

In cumulative terms, retail sales for the first eleven months of 2025 increased by 16.3%, indicating moderate growth despite monthly volatility.

Manufacturing Activity Improves

Manufacturing sector activity, proxied by direct tax collections and private sector pension contributions to the Social Security and National Insurance Trust (SSNIT) Tier-1 Scheme, strengthened in July 2025.

Total direct taxes collected rose by 14.8% year-on-year to GH¢5.26 billion, compared with GH¢4.58 billion in July 2024.

Cumulatively, direct tax collections for the first seven months of 2025 increased by 26.2% to GH¢47.59 billion, up from GH¢37.70 billion during the same period in 2024.

Breakdown of Direct Tax Contributions:

• Income Tax (PAYE & self-employed): 43.0%

• Corporate Tax: 35.8%

• Other Tax Sources: 21.2%

Private Sector SSNIT Contributions Rise

Private sector workers’ contributions to SSNIT Tier-1 increased by 8.6% year-on-year to GH¢513.34 million in July 2025, up from GH¢472.81 million in July 2024.

For the first seven months of 2025, contributions grew by 22.6% to GH¢3.48 billion, compared with GH¢2.84 billion recorded in the same period of 2024.

The growth suggests improving formal sector activity and payroll expansion.

Construction Sector Records Decline in Cement Sales

Construction activity, measured by cement sales volume, declined by 10.7% year-on-year in July 2025 to 212,735.33 tonnes, down from 238,167.80 tonnes a year earlier.