Shoppers in Accra are beginning to enjoy modest but welcome price cuts as businesses adjust to recent changes in the Value Added Tax (VAT) regime, following the government’s removal of the COVID-19 levy and the three per cent flat rate. The reforms have effectively brought VAT on goods down to 20 per cent.
Visits to several consumable goods outlets across the capital show that the scrapped levies are no longer being applied, with prices of everyday essentials already reflecting the new charges.
Retailers say the updated tax structure has now been fully incorporated into their billing systems, and point-of-sale receipts are showing lower tax components than in previous weeks.
Consumers report that the effect, while gradual, is increasingly visible. For shopper Mercy Kobi, the adjustment offers much-needed financial relief.
“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 requested anonymity, observed that the relief is more pronounced for bigger 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 is closely monitoring compliance with the new tax regime. Officials have cautioned that any business found to be charging unauthorised levies will face sanctions and noted that public education campaigns are ongoing to ensure consumers fully benefit from the reforms.
Story by: Mercy Addai Turkson #ahotoronline.com