Business News of Thursday, 1 January 2026Source: www.ghanaweb.comFollowing the passage of the Value Added Tax Act, 2025 (Act 1151), which takes effect from January 1, 2026, the VAT rate has been cut to 20% from its previous rate of 21.9%. This comes after the abolition of the COVID-19 Health Recovery Levy, marking an end to the pandemic-era tax measure. Under the new arrangement, both NHIL and GETFund levies will be treated as input tax deductions. “The VAT rate remains at 15% while the NHIL and GETFund levies stay at 2.5% each, bringing the total effective VAT rate to 20%,” the statement read. The authority further announced the abolition of the VAT Flat Rate Scheme (VFRS), replacing it with a unified and more transparent VAT structure.

Source: GhanaWeb January 01, 2026 13:50 UTC