Published by Jahaji Abban CA, Zenith Tax & Accounting Ghana Ltd.

The Minister for Finance, Dr. Cassiel Ato Forson, presented Ghana’s 2026 Mid-Year Fiscal Policy Review on 23 July 2026, reaffirming Government’s commitment to modernising the country’s tax system, strengthening compliance, and improving domestic revenue mobilisation without introducing new taxes. 

Unlike many mid-year budgets that introduce new tax handles, this review focuses on closing compliance gaps, leveraging technology, and strengthening tax administration. The reforms have significant implications for businesses, importers, manufacturers, tax practitioners and investors.

1. Government Maintains its “No New Taxes” Policy

One of the most significant announcements is that Government did not introduce any new taxes.

Instead, Government reiterated its strategy of increasing revenue through:

• Improved tax administration
• Enhanced taxpayer compliance
• Digitalisation of tax systems
• Reduction of revenue leakages
• Smarter enforcement mechanisms

Government argues that sustainable revenue should come from better compliance rather than higher tax rates.

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2. VAT Reforms Continue

The Mid-Year Review confirms that Government has undertaken the first comprehensive VAT reforms since 2015.

According to the Review, the VAT reforms are intended to:

• remove distortions within the VAT system;
• improve efficiency;
• strengthen compliance;
• increase working capital available to businesses;
• support investment and job creation. 

For VAT-registered businesses, this means continued emphasis on proper VAT accounting and compliance.

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3. Fiscal Electronic Devices (E-Invoicing)

Perhaps the biggest compliance reform is the nationwide implementation of Fiscal Electronic Devices (FEDs).

Government estimates that Ghana currently loses approximately 60% of its potential VAT revenue because of non-compliance and weaknesses in VAT administration.

Fiscal Electronic Devices are expected to:

• record sales electronically;
• improve VAT reporting;
• reduce under-declaration of sales;
• minimise VAT leakages;
• ensure businesses properly account for VAT collected from customers.

Government also signalled a tougher stance against businesses that collect VAT but fail to remit it to the Ghana Revenue Authority (GRA). 

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4. Review of Ghana’s Core Tax Laws

Government announced that reviews of the:

• Customs Act
• Excise Duty Act

have been completed and new Bills have been laid before Parliament for approval.

These legislative reforms are intended to modernise Ghana’s tax framework and improve revenue collection. 

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5. Major Customs Reforms

The customs reforms are designed to tackle revenue leakages while facilitating legitimate trade.

Key measures include:

Restriction of Warehousing Periods

Maximum warehousing periods will now apply:

• Perishable goods – 3 months
• General goods – 6 months
• Raw materials – 12 months

Re-warehousing will also be restricted to prevent indefinite storage that delays duty payments. 

Electronic Warehouse Monitoring

Bonded warehouses will be required to operate electronic inventory systems linked directly with Customs for real-time monitoring.

First Port Duty Rule

Government proposes that import duties and taxes become payable at the first port of entry, reducing abuse of the transit regime.

Free Zones Reforms

Government plans to tighten the Free Zones regime by:

• restricting licences to genuine manufacturers;
• limiting duty exemptions;
• requiring raw materials to be used within 12 months;
• ensuring taxes are paid on goods entering the domestic market.

Mandatory TIN for Importers

All importers will be required to use the appropriate Tax Identification Number to strengthen customs oversight and improve compliance.

Removal of Tax Exemption on Bunkering Services

Government intends to abolish the tax exemption currently available for bunkering services to reduce smuggling and protect revenue. 

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6. Excise Duty Reforms

Government observed that approximately 78% of imported wines and spirits entered customs procedures without attracting excise duty, creating substantial revenue losses.

The proposed reforms include:

• introduction of a hybrid excise system combining ad valorem and specific taxation;
• revision of excise rates on beer and stout;
• nationwide electronic registration of stockists;
• implementation of a track-and-trace system;
• penalties of up to three times the excise duty for tampering;
• stronger enforcement through mandatory bank guarantees.

Importantly, Government also proposes to abolish the 20% excise duty on locally manufactured fruit juices, providing support to agro-processing businesses and local manufacturers. 

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7. Artificial Intelligence in Tax Administration

Government highlighted the successful deployment of the Publican AI Trade Solution, an artificial intelligence platform supporting customs administration.

The system has reportedly:

• increased monthly customs revenue by approximately 15%;
• improved compliance;
• reduced customs leakages;
• strengthened enforcement;
• detected breaches of the Foreign Exchange Act.

Government also plans to extend the system to vehicle valuation and introduce controls to prevent abuse of Import Declaration Forms. 

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8. Ghana Card Becomes the Primary Tax Identifier

Government intends to strengthen taxpayer identification by enforcing the Ghana Card Number as the sole Tax Identification Number (TIN) for all tax transactions.

This integration will enhance:

• tax administration;
• customs administration;
• taxpayer identification;
• revenue assurance.

Businesses should ensure that all tax records are updated accordingly. 

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9. Stronger Revenue Despite Tax Reductions

One of the notable outcomes highlighted in the Mid-Year Review is that Government recorded higher tax performance despite abolishing several taxes.

According to the Review:

• E-Levy was abolished;
• Betting Tax was abolished;
• COVID-19 Health Levy was abolished;
• Emissions Levy was abolished;
• VAT on motor insurance was removed.

Yet, non-oil tax revenue increased from 12.6% of GDP in 2024 to 13.1% of GDP in 2025, demonstrating the impact of stronger compliance and improved administration. 

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10. Tax Administration Reforms Under the Post-IMF Programme

Government’s post-IMF reform agenda includes several tax administration milestones, including:

• full rollout of the Integrated Tax Administration System (ITAS);
• comprehensive review of excise and customs legislation;
• comprehensive review of the Income Tax legislation by June 2027;
• publication of a new Medium-Term Revenue Strategy (2027–2030). 

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What Businesses Should Do

The Mid-Year Review clearly signals a shift from introducing new taxes to enforcing existing tax laws more effectively. Businesses should therefore:

• Review VAT compliance processes.
• Prepare for Fiscal Electronic Devices and enhanced digital reporting.
• Ensure timely remittance of VAT collected.
• Verify that Tax Identification Numbers are accurate and aligned with the Ghana Card.
• Review import procedures to prepare for the new Customs rules.
• Assess the impact of the proposed Excise Duty reforms.
• Strengthen internal tax controls and documentation in anticipation of increased digital audits.
• Ensure adequate compliance across all tax types in Ghana

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Conclusion

The 2026 Mid-Year Fiscal Policy Review marks another step in Ghana’s transition toward a technology-driven tax administration system. Rather than increasing tax rates, Government is focusing on expanding the tax base, improving compliance, modernising tax laws and closing revenue leakages through digital innovation and stronger enforcement. Businesses that invest in robust tax governance and proactive compliance will be best positioned to adapt to these reforms and minimise tax risks.

Source: 2026 Mid-Year Fiscal Policy Review of the Government of Ghana.