Ghana: Tax measures in mid-year budget

The 2025 mid-year budget review reaffirms the government's commitment to tax initiatives introduced in the 2025 budget statement in March 2025 (read TaxNewsFlash). A summary of the tax measures and updates included in the mid-year budget covers:

• Withdrawal of tax exemption on marine gas oil (MGO): The government proposes removing tax exemptions for non-artisanal fishing fleets operating from Ghana.
• Value added tax (VAT) reforms: A new VAT bill is scheduled to be presented to Parliament by October 2025 to include a repeal of the COVID levy, removal of the cascading effects of Ghana Education Trust Fund Levy (GETFL) and National Health Insurance Levy (NHIL), increase in the VAT registration threshold, and reduction in the effective VAT rate.
• Reinforcement of Modified Taxation System (MTS): The government has introduced a USSD code and a simplified digital tax return to support the MTS under which eligible taxpayers pay a flat 3% tax on turnover.
• Tax education: The government plans to launch a comprehensive tax education strategy to enhance taxpayer awareness, compliance, and revenue mobilization.
• Customs revenue improvement measures:
  • Deployment of AI tools for accurate import assessments.
  • Rollout of the Advance Cargo Information (ACI) system for early shipment data
  • Enhanced anti-smuggling surveillance
  • Institutional reform of the Customs Division for improved transparency and efficiency

Read an August 2025 report (31 pages) prepared by the KPMG member firm in Ghana