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The Minister of Finance, Dr. Cassiel Ato Forson, has revealed that Ghana is losing an estimated 60% of its potential Value Added Tax (VAT) revenue due to non-compliance and systemic inefficiencies.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, Dr Forson described the situation as unacceptable and called on Parliament to support government’s efforts to address revenue leakages.
He urged a crackdown on businesses and individuals who collect VAT from customers but fail to remit the funds to the state.
According to the Finance Minister, government is introducing physical electronic devices to strengthen VAT monitoring, improve compliance, and ensure businesses properly account for VAT collected.
He added that the pilot phase of the electronic VAT monitoring system is at an advanced stage.
Dr Forson also announced plans to introduce a VAT reward scheme, where customers who request valid VAT invoices will stand a chance of receiving periodic rewards.
He said the initiative is aimed at encouraging citizens to actively participate in protecting Ghana’s tax base, adding that a strong tax culture can be built through participation, transparency, and incentives.
Story by Efua Nessa