Domestic VAT collections for the first five months of 2025 rose by 33.6% to GH¢8.31 billion, compared to GH¢6.22 billion recorded during the same period in 2024
That’s according to the Bank of Ghana’s July Monetary Policy Report, which also points to solid growth in retail sales over the same period.
This signals stronger consumer demand and improved tax compliance.
The report shows that retail sales increased by 35.7% cumulatively between January and May 2025, highlighting growing household spending and recovery in private consumption.
On a year-on-year basis, sales for May alone rose 38.6% to GH¢277.62 million, from GH¢200.27 million in May 2024. Month-on-month, retail activity improved by 4.6 percent, moving from GH¢265.46 million in April to GH¢277.62 million in May.
Domestic VAT collections also saw a robust performance in May, rising 30.1 percent year-on-year to GH¢1.77 billion. This can be attributed to the upward trend in both VAT and retail sales to enhanced economic activity, stronger consumer confidence, and improved tax administration.
According to the data, the uptick in consumer spending reflects a gradual rebound in domestic demand, supported by stable prices and moderate growth in disposable incomes.
However, market watchers believe that sustaining this positive momentum will depend on maintaining fiscal discipline, curbing inflationary pressures, and strengthening policy measures to support household purchasing power.
