The Minority in Parliament is cautioning that additional tax hikes are anticipated in the near future—a situation they assert will further strain businesses that are already facing difficulties.
The caucus indicates that the passage of the Value Added Tax (VAT) Bill 2025, which abolishes the flat-rate VAT system, effectively increases VAT on retail goods and services from 3% to 15% and raises VAT on real estate from 5% to 15%.
During the debate on the VAT Bill in Parliament on Wednesday, November 26, 2025, the Minority Leader, Alexander Afenyo-Markin, contended that the revised tax structure will complicate compliance for businesses and may exacerbate the already tough economic conditions.
“The burden contained therein is this: you are increasing retail services VAT from 3% to 15%. Also, real estate is going up from 5% to 15%. The revenue-neutrality language you are using is not of interest to us. You state in your own report that the introduction of this bill will help the government generate revenue. We are telling you that this bill is being brought because you need revenue,” he stated.
Conversely, Deputy Finance Minister Thomas Nyarko Ampem dismissed the assertion, maintaining that the new VAT framework will facilitate compliance rather than impose further tax burdens on businesses or the public.
“The bill, contrary to what the Minority Leader is saying, is not imposing any new tax on Ghanaians. It is rather giving back to Ghanaians. The decision to change the treatment of the Health Insurance Levy and GETFund Levy to allow for tax-credit deductibility is a win-win. The NHIL alone, by changing from a straight levy to a VAT-creditable levy, offers relief,” he clarified.
