Shoppers in Accra are beginning to feel the benefits of the new Value Added Tax (VAT) system, which came into effect on January 1, 2026, following its announcement in the 2026 Budget.
Management at major retailers, including Melcom and Palace Mall, confirmed that the revised VAT has led to noticeable reductions in prices for consumers. Customers have reportedly received receipts reflecting the lower rates, prompting visits by officials from the Ghana Revenue Authority (GRA) to verify compliance.
The GRA team, led by Commissioner General Anthony Sarpong and accompanied by Dr Martin Yamborigya, Commissioner of Domestic Tax Revenue, conducted inspections at several supermarkets, including Melcom, Palace Mall, and Orca Deco on Spintex Road.
At Melcom, Head of Audit Sushil Jha noted that customers were enjoying approximately a 1.9 percent reduction in the cost of goods, largely due to the removal of the COVID-19 levy and a slight decrease in the VAT rate. “Our customers are happy with the new rate. This is positive news for our business, and we are grateful to the Commissioner General and the government,” he said.
Similarly, Joshua Israel, Head of Accounts at Palace Mall, confirmed that the reduced VAT had been successfully integrated into their payment systems, ensuring that shoppers benefit immediately at the point of sale.
During the visits, the GRA team observed that most items had been adjusted to reflect the new tax rate, and several customers expressed satisfaction that the COVID-19 levy had been removed from their receipts.
The implementation of the new VAT is expected to ease the cost of living for consumers while maintaining compliance with tax regulations, a move welcomed by both retailers and shoppers across Accra.
