GRA rolls out new tax policies from July 1 to boost domestic revenue

The Ghana Revenue Authority (GRA) will, from today, begin implementing key tax policies aimed at strengthening the country’s domestic revenue mobilisation and reducing reliance on debt financing.

The measures include the Modified Taxation Scheme (MTS), VAT on real estate, and VAT on non-life insurance — all part of efforts to plug revenue leakages and broaden the tax base.

Speaking at a media briefing, Acting Commissioner-General of GRA, Mr. Anthony Kwasi Sarpong, clarified that these were not new taxes but reforms within existing tax laws to simplify compliance and enhance efficiency.

“We are tax implementors. As the President and the Finance Minister have reiterated, we need to mobilise more revenue to meet critical budgetary allocations,” Mr. Sarpong said. “These are not additional taxes but simplified methods to help us seal revenue loopholes without overburdening Ghanaians.”

The Modified Taxation Scheme, grounded in the Income Tax Act, 2015 (Act 896), targets micro, small, and medium businesses, particularly in the informal sector. It introduces flexible mechanisms such as presumptive tax based on instalments (GH¢45 quarterly for businesses with turnover under GH¢20,000), a flat 3% tax for businesses earning between GH¢20,000 and GH¢500,000, and a modified cash basis with graduated rates and allowable deductions for higher earners.

Businesses can pay taxes using mobile money, USSD code *222#, bank deposits, or register via GRA offices or a new mobile app.

In addition, the GRA is expanding the Special Voluntary Disclosure Program (SVDP), introduced in 2024, which allows resident individuals earning income abroad to voluntarily declare and pay taxes on foreign earnings without incurring penalties.

Real estate developers are also required to begin charging a 5% VAT on the supply and rental of immovable property, excluding residential dwellings and agricultural properties. This is in accordance with the VAT (Amendment) Act, 2023 (Act 1107). A 1% COVID-19 levy also applies. Non-compliance by appointed withholding agents could attract a 30% penalty on the amount not accounted for.

Further, the GRA will enforce VAT on non-life insurance premiums, including fire, marine, liability, engineering, burglary, personal accident, and workmen’s compensation policies. Insurers are to charge a 15% VAT and are expected to update accounting systems, train staff, and communicate with clients to ensure smooth implementation.

“These measures represent a balanced approach to revenue generation,” Mr. Sarpong noted. “The Authority is creating multiple pathways for compliance while ensuring all critical sectors contribute their fair share.”

The GRA says the reforms are vital to “resetting the economy” and ensuring fiscal stability without introducing fresh tax burdens on the public.