President John Dramani Mahama has announced legislative packages to implement progressive reforms in Ghana’s penal system and judicial administration.
These reforms aim to alleviate prison overcrowding and enhance the efficiency of justice delivery.
In discussing the Community Service Act, 2026, President Mahama clarified that non-custodial sentences will apply to minor offences, conserving taxpayer resources and offering constructive rehabilitation alternatives.
“Rather than incarcerating individuals for minor thefts or other trivial offences, which incur costs for the government in maintaining prisoners, they can instead be sentenced to perform community service for the duration of their conviction,” the President stated upon signing the Bill.
President John Dramani Mahama has enacted ten significant legislative bills into law, representing a pivotal move towards structural reforms aimed at fostering economic growth, addressing revenue leakages, modernizing justice delivery, enhancing national security, and providing relief to Ghanaian workers and farmers.
These new laws span essential sectors including the economy, business, law enforcement, maritime security, education, and social protection.
Following the enactment of these bills, President Mahama, accompanied by his Chief of Staff, Julius Debrah, PhD, and various ministers of state, remarked that this legislative initiative fulfills critical government commitments and establishes a streamlined legal framework for sustainable national development.
Among the new laws is the Ghana Cocoa Board Act, 2026, which commits the government to its pledges to revamp the agricultural sector and ensure fair compensation for cocoa farmers.
“I am confident that our cocoa farmers will be pleased,” stated President Mahama. “This includes the reform of the cocoa sector and our commitment to process at least 50% of our cocoa beans domestically. Additionally, the assurance we provided to farmers that they will receive 70% of the global market price for cocoa is also included in this legislation. Thus, a promise made is a promise kept.”
To safeguard low-income families, the President approved the Income Tax Amendment Act, 2026, which alleviates tax obligations for low-wage earners.
“This Act exempts individuals earning the minimum wage and below from income tax. Anyone earning the minimum wage or less is exempt,” President Mahama announced.
Local industrial development received significant support through the Excise Act, 2026, which consolidates excise duties, prevents revenue losses on imported taxable goods such as alcohol and cigarettes, and provides targeted tax exemptions for domestic producers.
“Crucially, it grants exemption from excise tax to local manufacturers of fruit juices,” the President elaborated. “This is intended to incentivize their production. If you produce fruit juices locally, this Act exempts you from excise duty.”
To enhance fiscal discipline and restore revenue efficiency, President Mahama approved three interconnected financial and commercial laws: The Customs Act, 2026, which consolidates all existing customs regulations into a single, cohesive statute to improve efficiency and prevent revenue loss.
“This comprehensive document integrates all amendments made over the years into one single text. It simplifies administration and enhances efficiency. Furthermore, it will close the loopholes that have led to significant revenue losses for the government due to the fragmented nature of the law,” President Mahama remarked.
The Energy Sector Levies Amendment Act of 2026 puts an end to the extensive misuse of fuel oil exemptions that were previously taken advantage of by factories and operators of maritime vessels. According to the new legislation, these operators are required to pay taxes in advance and provide verifiable documentation for reimbursement.
The Value Added Tax (VAT) Amendment Act of 2026 modifies the administration of VAT to be consistent with recent monetary policy measures. Large gold mining companies that allocate 30 percent of their gold production to the Bank of Ghana are granted an exemption from VAT on those amounts.
