Friday, 24 July

Mid-Year Budget Review: Digital VAT system set to generate over GH¢2 billion in first year - Ato Forson

News
Dr Cassiel Ato Forson

The government’s new digital system for collecting Value Added Tax (VAT) from non-resident digital platforms is expected to generate about GH¢2.3 billion in its first year of implementation, Finance Minister Dr Cassiel Ato Forson has announced.

Dr Ato Forson disclosed this on Thursday, July 23, during the presentation of the 2026 Mid-Year Budget Review in Parliament where he outlined government’s plans to modernise revenue collection and expand Ghana’s domestic revenue base.

According to the Finance Minister, the technology-driven VAT collection system forms part of broader reforms aimed at improving tax compliance and ensuring that businesses operating in Ghana’s digital economy contribute their fair share.

He explained that the cross-border technology solution was successfully piloted in April 2026 with the trial confirming that the system was ready for nationwide deployment.

“The pilot confirmed that the system is functional, stable, secure and compliant with regulatory requirements,” Dr Ato Forson told Parliament.

He added that government is currently working to secure the necessary regulatory approvals to allow for the full rollout of the platform.

The Finance Minister further revealed that revenue from the digital VAT system is projected to increase by about 20 percent annually after the first year of implementation, creating a sustainable source of additional revenue for the State.

Dr Forson said the initiative reflects government’s commitment to using technology to strengthen tax administration, improve efficiency and increase compliance without relying solely on raising tax rates.

He noted that expanding digital solutions within the tax system will play a critical role in mobilising more domestic revenue to support national development and reduce pressure on traditional revenue sources.

The introduction of the digital VAT platform comes as Ghana continues efforts to broaden its tax base and capture economic activities within the rapidly growing digital sector.                                                            

Source: classfmonline.com/Osborne Ntim-Gyakari