Business
Ghana’s Consumption Tax Reset: What the New VAT Changes Mean for Diasporans Doing Business Back Home
Ghana is entering 2026 with a major reset of its consumption tax system—one that could materially affect how much businesses charge, collect, and reclaim from January 1.
For diasporans investing in, running, or planning businesses in Ghana, the changes announced by the Ghana Revenue Authority (GRA) are worth close attention.
Below is a clear, plain-language guide to what has changed, why it matters, and how it could affect your operations.
The Big Picture: A Simpler, Lighter Tax System
The GRA says the reforms are meant to reduce pressure on businesses and households, clean up a complicated tax structure, and make compliance easier. The changes are backed by the Value Added Tax Act, 2025 (Act 1151) and take effect January 1, 2026.
In practical terms, Ghana is:
- Lowering the main VAT rate
- Scrapping special add-on levies
- Removing a separate retail tax scheme
- Raising the bar for who must register for VAT
For many small and medium businesses—especially trading businesses run by returnees or diaspora partners—this is a meaningful shift.
1. The Core Consumption Tax Rate Has Been Cut
The most headline change is the reduction in the standard VAT rate.
- VAT rate reduced to 20% from 21.9%
According to the GRA, this cut is intended to ease costs for both consumers and businesses. For companies that charge VAT, this affects:
- Final prices paid by customers
- Cash flow from tax collections
- Pricing strategies for 2026 contracts and invoices
If your business sells taxable goods or services, your systems, invoices, and pricing will need to reflect the new rate from January 1.
2. Many Small Trading Businesses No Longer Need to Register
One of the most business-friendly changes affects traders and importers dealing mainly in goods.
- VAT registration threshold raised from GH¢200,000 to GH¢750,000
This means:
- If your annual turnover from goods is below GH¢750,000, you may no longer be required to register for VAT
- Thousands of small traders are expected to exit the VAT net
For diasporans running small wholesale, retail, or import businesses through family or local partners, this could:
- Reduce paperwork
- Lower compliance costs
- Simplify pricing for customers
However, businesses that voluntarily register—or that exceed the threshold—will still be fully subject to VAT rules.

3. The COVID Levy Is Gone
The GRA has officially abolished the COVID-19 Health Recovery Levy, which was introduced during the pandemic years.
- No more COVID levy from January 1, 2026
For businesses, this removes an extra charge that was often added to VAT calculations and customer bills. The move signals a formal end to pandemic-era tax measures.
4. NHIL and GETFund Levies Can Now Be Reclaimed
Previously, businesses paid the National Health Insurance Levy (NHIL) and GETFund levy without being able to recover them.
That changes in 2026.
- NHIL and GETFund levies can now be claimed back as input tax
In simple terms:
- If your business pays these levies on purchases, you can deduct them when filing VAT
- This reduces the true tax cost to VAT-registered businesses
For manufacturers, service providers, and larger trading firms, this improves cash flow and reduces tax “leakage.”
5. The Retail Flat Rate Scheme Has Been Scrapped
Ghana is also ending a special VAT arrangement that applied mainly to retailers.
- The VAT Flat Rate Scheme (VFRS) has been abolished
Under the new system:
- All VAT-registered businesses fall under one unified structure
- No separate retail-only VAT regime
The GRA says this makes the system more transparent and easier to manage. For diasporans used to standard VAT systems abroad, this brings Ghana closer to familiar international practice.
6. When Everything Takes Effect
All changes take effect at once.
- Effective date: January 1, 2026
Businesses should update:
- Accounting software
- Point-of-sale systems
- Invoicing templates
- Contracts that reference tax rates
Why This Matters for Diasporans
If you are in the diaspora and:
- Running a business in Ghana
- Investing in a local enterprise
- Planning to return and start a venture
These reforms could mean:
- Lower upfront tax pressure
- Fewer registration hurdles for small operations
- Clearer rules that are closer to global VAT standards
That said, compliance still matters. The GRA has directed the reforms at VAT-registered taxpayers, employers, importers, exporters, accountants, auditors, clearing agents, and tax consultants, and is urging businesses to seek guidance where needed.
For clarification, the authority advises contacting the nearest Taxpayer Service Centre or using its official phone, WhatsApp, and email channels.
Bottom Line
Ghana’s 2026 consumption tax overhaul is one of the most sweeping in years. For diasporans, it signals a government effort to simplify taxes, lower costs, and make doing business easier—but only for those who understand and adapt early.
Business
Young Self-Taught Black Inventor Julian Brown Develops Revolutionary Plastic-to-Fuel Technology
Atlanta, USA – A young Black inventor from Atlanta, Julian Brown, has stunned the scientific community and gone viral worldwide after developing a backyard process that converts everyday plastic waste into usable diesel, gasoline, and jet fuel.
Born in Tennessee and raised in Atlanta, Brown — a self-taught welder with no formal degree or laboratory — created a system called “Plastoline.”
Using an upgraded form of pyrolysis (a thermal decomposition process), enhanced with microwaves and solar energy for cleaner conversion, he built a small reactor capable of turning discarded plastics back into high-quality fuel.
Independent tests reportedly confirmed that the diesel and gasoline produced are among the most refined seen, and he has successfully powered vehicles with the fuel in live demonstrations.
Brown launched a startup called Nature Jab and began sharing his experiments on Instagram and TikTok, where the videos quickly gained millions of views globally. Despite suffering second-degree burns in a reactor explosion, he refused to abandon the project.
He attempted to raise $1 million to scale the technology but secured only tens of thousands of dollars. In July 2025, he posted that he was under attack before temporarily vanishing from public view.
He has since re-emerged, with supporters calling for his protection and greater investment in his work.
The innovation has sparked particular excitement across Africa, where plastic waste accumulates in massive quantities in landfills and communities.
Experts say Brown’s technology could offer a practical solution for turning waste into energy, addressing both environmental pollution and fuel shortages on the continent.
Commentators have criticised the lack of substantial support from investors and the broader community, questioning why a breakthrough with such transformative potential, especially from a young Black inventor, has not received wider backing.
Business
MTN Signals Major Data Center Investment Plans in Ghana
Accra, Ghana – MTN Group is exploring significant investments in data centers in Ghana as Part of its digital push.
The telecoms giant says the move is a natural extension of its broader digital infrastructure strategy in one of its most important African markets.
Group Chief Executive Officer Ralph Mupita made the announcement during a strategic visit to Ghana at the beginning of 2026. He said the company is keen to partner with both public and private stakeholders to develop large-scale data centers that would enhance cloud computing, data storage, and digital service capabilities across the country.
Mupita stated that such facilities are critical to supporting Ghana’s long-term digital transformation and economic growth.
He acknowledged, however, that establishing world-class data centers would require addressing key infrastructure challenges, particularly reliable power supply, suitable land, and advanced cooling systems. MTN is therefore considering collaborative models to ensure projects meet both commercial viability and sustainability standards.
During his engagements, Mupita held discussions with MTN Ghana’s leadership, regulators, and senior government officials, including the Bank of Ghana, the Ghana Investment Promotion Centre, and Minister for Communications, Digital Technology and Innovations, Sam George.
He described Ghana as a priority market that “feels like home” and reaffirmed the Group’s commitment to deepening investments in digital infrastructure and financial inclusion.
On the fintech front, Mupita highlighted plans to expand mobile money services while working closely with the central bank to strengthen fraud prevention through artificial intelligence.
The visit underscored MTN’s ambition to remain a key partner in Ghana’s digital economy, driving innovation, job creation, and inclusive growth.
MTN Ghana (Scancom PLC) is the dominant telecommunications market leader in Ghana and has been recognized as a top-performing operation within the MTN Group. The company is actively shifting from a traditional telco to a technology platform company, with a focus on fintech (Mobile Money) and digital inclusion.
Business
New Cashew Processing Plant and Fertilizer Facility to be Set Up in Ghana
Accra, Ghana – Ghana’s Ministry of Food and Agriculture has signed three Memoranda of Understanding with Chinese firm SENTUO Group Limited to drive agro-industrial growth through major new investments in processing, fertiliser production, and farmer support services.
The agreements, signed in Accra on Tuesday, include the establishment of a cashew processing plant at Sampa in the Bono Region and a fertiliser manufacturing facility. SENTUO will also roll out 30 Farmer Service Centres nationwide to improve access to quality inputs, mechanisation services, and technical support for farmers.

The projects are expected to create significant employment opportunities, particularly for young people, while enhancing value addition and reducing Ghana’s reliance on raw commodity exports.
Minister for Food and Agriculture Eric Opoku described the partnership as a major step toward the government’s Agriculture for Economic Transformation Agenda.
“We are ready to industrialise Ghana’s agriculture,” he said, adding that the cashew plant will process both nuts and apples to maximise returns across the entire value chain.
He emphasised the need to move from exporting raw produce to building a vibrant, value-driven agro-industrial economy.
The Chairman of SENTUO Group Limited, Xu Mingjuan, said the company’s nearly 20 years of operation in Ghana and the current government’s 24-hour economy policy had encouraged further investment. He confirmed that engineers have already started preliminary work on the projects.
The deals signal growing Chinese interest in Ghana’s agricultural transformation and are expected to strengthen food security, boost exports, and create sustainable jobs across the value chain.
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