The Minister of Finance, Dr Cassiel Ato Forson, has confirmed that sweeping Value Added Tax (VAT) reforms included in the 2026 national budget and passed into law are expected to return nearly GH¢6 billion to households and businesses in the year.

The package, which took effect on January 1, 2026, includes several measures designed to reduce the burden on taxpayers, stimulate economic activities and simplify compliance for Small and Medium-sized Enterprises.

According to Dr Forson, in a post on his X account on January 1, 2026, these combined reforms, by lowering costs for businesses and easing the tax load on households, will return close to GH¢6 billion in economic relief as the new VAT framework takes effect in 2026.

“Altogether, these VAT reforms are expected to return nearly GH¢6 billion to businesses and households this year alone!” he posted.

Your support for tough reforms is helping reset our economy - Ato Forson to Ghanaians

Among the key reforms is the abolition of the COVID-19 Health Recovery Levy, which alone is projected to inject about GH¢3.7 billion back into the economy in 2026.

Other measures include a reduction in the effective VAT rate from 21.9% to 20%, a substantial increase in the VAT registration threshold from GH¢200,000 to GH¢750,000, and the restoration of input tax deductibility for levies previously excluded from the VAT base.

See the post below:

Afehyiapa ooo

New VAT reforms start today!

Altogether, these VAT reforms are expected to return nearly GH¢6 billion to businesses and households this year alone! pic.twitter.com/iMHPjxumtq

— Cassiel Ato Forson (PhD) (@Cassielforson) January 1, 2026