Beginning today, July 1, 2025, the Ghana Revenue Authority (GRA) will activate a series of tax administration reforms designed to expand the national tax base and enhance compliance, in line with government efforts to reduce debt dependence and reset the economy.
The reforms—though not new taxes—target improved enforcement and simplification of existing tax laws, according to Mr. Anthony Kwasi Sarpong, Acting Commissioner-General of the GRA. The new measures include the Modified Taxation Scheme (MTS) for informal sector businesses, Value Added Tax (VAT) on Real Estate, and VAT on Non-Life Insurance.
“These are not additional taxes,” Mr. Sarpong clarified during a media engagement. “They are simplified approaches to enforce existing laws and ensure every eligible Ghanaian and business pays their fair share.”
Modified Taxation Scheme Targets Informal Sector
A major highlight is the MTS, aimed at micro, small, and medium enterprises (MSMEs). Under the scheme:
- Businesses earning below GH¢20,000 annually will pay fixed quarterly amounts of up to GH¢45.
- Businesses earning between GH¢20,000 and GH¢500,000 will be charged a 3% flat rate on turnover.
- Higher-income informal businesses will file taxes under a Modified Cash Basis, which includes graduated rates and allowable deductions.
The scheme allows for flexible registration at GRA offices or via a mobile app and includes multiple payment options such as mobile money and USSD.
VAT on Real Estate and Non-Life Insurance Now Enforced
In addition to the MTS, the GRA will now enforce provisions of the VAT (Amendment) Act, 2023 (Act 1107) which requires estate developers to charge VAT on immovable property sales and rentals. A 5% VAT and a 1% COVID-19 levy are applicable to commercial and non-residential property rentals and sales.
Residential dwellings and agricultural properties remain exempt.
Similarly, non-life insurance premiums for policies such as fire, marine, indemnity, and burglary will now attract a 15% VAT. Insurers are expected to update their systems, train staff, and engage clients to ensure smooth rollout.
Voluntary Disclosure and Compliance Pathways Expanded
To support transparency and broaden the revenue base, the GRA is intensifying its Special Voluntary Disclosure Programme (SVDP), encouraging resident Ghanaians earning income abroad to declare previously undisclosed income without facing penalties.
Mr. Sarpong emphasized that tax enforcement must complement nation-building: “We are not here to burden Ghanaians but to ensure fairness and sustainability. A functioning economy depends on everyone playing their part.”
With these measures, the GRA seeks to plug longstanding revenue leaks, particularly in high-growth sectors like real estate and insurance, while simplifying tax filing for the informal economy—an often overlooked but substantial part of Ghana’s fiscal potential.
