The Ghana Revenue Authority (GRA) has announced that a series of key tax policies will take effect from July 1, 2025, as part of efforts to strengthen domestic revenue mobilization and reduce reliance on external funding.
The new measures include the Modified Taxation Scheme (MTS), Value Added Tax (VAT) on real estate transactions, and VAT on non-life insurance services.
Acting Commissioner-General of the GRA, Anthony Kwasi Sarpong, explained that the Modified Taxation Scheme is designed as a simplified framework, particularly for micro, small and medium enterprises across the country, under the Income Tax Act, 2015 (Act 896).
“We as GRA are tax implementers and as the President has announced and reiterated by the Minister of Finance, the country must mobilize more revenue so that we can take care of critical budgetary allocations as many of the donor partners have closed their doors to Ghana. What we need to do is to look at the existing revenue handles and implement it to the latter. We believe that if we’re able to do these, then we can seal many of the revenue loopholes that are being closed onto us as a country. I can assure you that these are not new taxes and it is not intended to overburden Ghanaians but rather to support the resetting of the economy,” he noted.
Under the new scheme, Ghanaian residents earning income solely from business activities will be taxed under one of three simplified categories Presumptive Tax Based on Installments (PTI), Presumptive Tax Based on Turnover (PTT), and Modified Cash Basis (MCB) depending on their annual earnings. Payment options include mobile money, USSD (*222#), and bank deposits, with registration available at GRA offices or via a mobile application.
In addition to MTS, the GRA is intensifying efforts under the Special Voluntary Disclosure Programe (SVDP), which offers individuals earning income abroad the opportunity to regularize their tax status without penalties.
VAT on the rental and sale of immovable property by estate developers will also be enforced under the VAT (Amendment) Act, 2023 (Act 1107), with a 5 percent VAT charge and an additional 1 percent COVID-19 levy applied. Exemptions are granted for residential dwellings and agricultural properties. Developers who fail to comply may face a 30 percent penalty in addition to the due VAT.
Furthermore, from July, insurance providers will be required to charge a 15 percent VAT on non-life insurance premiums, covering services such as fire, marine, liability, and accident policies. Companies are expected to update their systems, train staff, and inform clients to ensure smooth implementation.
The GRA believes these strategies create a fair and efficient revenue system while ensuring that all sectors contribute equitably to national development.
