By Adnan Adams Mohammed
The Ghana Revenue Authority (GRA) has officially declared war on tax evasion, inaugurating a specialized Compliance and Enforcement Unit to chase down businesses failing to remit Value Added Tax (VAT).
The move comes after a startling audit revealed that nearly 60 out of every 100 businesses visited in recent months are either not registered for VAT or are collecting the tax from consumers without remitting a single pesewa to the state. This “leakage” is a major hurdle for the GRA as it pursues a massive GH¢225 billion revenue target for 2026.
The new 26-member team, housed under the Domestic Tax Revenue Division (DTRD), has a singular mandate: to ensure the reformed VAT Act, 2025 (Act 1151), which took effect on January 1, is strictly followed.
Commissioner-General Anthony Kwasi Sarpong warned that the era of “voluntary ignorance” is over.
“Others take from customers but fail to remit to the GRA. Our eyes are open, and we are coming with the full strength of our service,” Sarpong stated. “Those who cooperate will be dealt with professionally, but we must close this gap.”
Carrots and Sticks: The 2026 Strategy
The GRA isn’t just relying on enforcement; it is combining the “stick” of the new task force with the “carrot” of modern technology and rewards.
● The Stick: The Enforcement Team will conduct unannounced market sweeps and audits to identify defaulters.
● The Carrot: A National VAT Reward Scheme is launching this year, incentivizing customers to demand receipts in exchange for prizes, effectively turning every consumer into a tax inspector.
● The Tech: Increased automation and E-VAT APIs are being deployed to make it harder for businesses to hide transactions.
Key 2026 VAT Reforms Previous Status Current Status (Act 1151)
Registration Threshold GH¢200,000 GH¢750,000 (for goods)
Effective VAT Rate 21.9% 20%
COVID-19 Levy 1% Abolished
Flat Rate Scheme 3% Retail Abolished
A Call for Professionalism
The Commissioner for Domestic Tax Revenue, Dr. Martin Yamborigya, urged the new team to maintain high ethical standards while being firm. He stressed that while the goal is revenue mobilization, the rights of taxpayers must be respected.
“The introduction of the new VAT Act reflects the government’s determination to modernize our tax system,” Yamborigya said. He encouraged businesses with genuine challenges to engage the GRA directly rather than waiting for the enforcement team to arrive at their doorstep.
Impact on the 24H⁺ Programme
The success of this enforcement drive is critical to funding the government’s 24H⁺ (24-Hour Economy) initiatives. With the removal of the cascading tax effect, compliant businesses are now able to claim GETFund and NHIL as input credits a move designed to reduce production costs and, ultimately, lower prices for the Ghanaian consumer.
