SHOPPERS ARE NOTICING PRICE REDUCTIONS AS A RESULT OF VAT REFORMS.

Shoppers in Accra are seeing modest price reductions as businesses adapt to recent changes in the Value Added Tax (VAT) system, notably the government's removal of the COVID-19 levy and the three percent flat rate, which has lowered VAT on goods to 20 percent.

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‎Checks at multiple consumable goods outlets in Accra show that the abolished levies are not being applied, leading to adjustments in the prices of basic items.

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‎Retailers have successfully integrated the revised tax structure into their billing systems, resulting in lower charges on point-of-sale receipts. Consumers, including shopper Mercy Kobi, have noticed this gradual impact, perceiving it as a welcome relief from financial pressure.

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‎Two shoppers expressed relief over a recent change in taxation on purchases. One shopper highlighted that they now only pay NHIL, GETFund, and VAT, feeling happy about the reduced costs compared to previous levies. Another shopper mentioned that the relief is more noticeable when making larger purchases.

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‎Ghana Revenue Authority (GRA) will monitor compliance with the new tax regime, emphasizing that bulk purchases can lead to significant reductions while small quantities may not reflect noticeable savings. Businesses charging unauthorized levies will face penalties, and ongoing public education campaigns aim to ensure consumers benefit from the reforms

‎‎Shoppers in Accra are experiencing modest price reductions due to the government's recent changes in the VAT system, including the removal of the COVID-19 levy and a three percent flat rate, reducing VAT on goods to 20 percent. Retailers have integrated the new tax structure into their systems, resulting in lower prices for basic items. Consumers have noticed these changes, with some expressing relief regarding the reduced costs, particularly on larger purchases. The Ghana Revenue Authority will monitor compliance with the new tax regime, enforcing penalties for businesses charging unauthorized levies, while public education efforts aim to enhance consumer benefits from these reforms.