Shoppers in Accra are beginning to experience modest but welcome price reductions as businesses adjust to recent changes in the Value Added Tax (VAT) system, following the government’s removal of the COVID-19 levy and the three per cent flat rate. The reforms have effectively reduced VAT on goods to 20 per cent.
Checks at several consumable goods outlets across Accra indicate that the abolished levies are no longer being applied, with prices of basic items already reflecting the changes.
Retailers confirmed that the revised tax structure has been fully integrated into their billing systems, with point-of-sale receipts now showing lower charges compared to previous weeks.
Consumers say the impact, although gradual, is already noticeable. Mercy Kobi, a shopper, welcomed the development, describing it as a much-needed easing of financial pressure.
“I feel so happy because the last time I purchased, I remember how much I paid because of the levies. Now I only pay NHIL, GETFund and VAT,” she said.
Another shopper, who spoke on condition of anonymity, noted that the relief is more apparent with larger purchases.
“You will see a significant reduction if you buy in bulk. If you buy small quantities, you don’t really notice it,” she explained.
Meanwhile, the Ghana Revenue Authority (GRA) has assured the public that it will continue to monitor compliance with the new tax regime. Officials have warned that businesses found charging unauthorised levies will face penalties, adding that public education campaigns are ongoing to ensure consumers fully benefit from the reforms.
