The government is set to introduce a VAT Reward Scheme that will offer periodic rewards to consumers who demand and obtain valid VAT invoices when they purchase goods and services.
Finance Minister Dr. Cassiel Ato Forson announced the initiative while presenting the 2026 Mid-Year Fiscal Policy Review to Parliament on Thursday, July 23.
The scheme forms part of measures to improve VAT compliance, reduce revenue leakages and encourage consumers to ensure that businesses properly account for taxes collected on behalf of the state.
“To encourage participation and improve compliance, Government will also introduce a VAT Reward Scheme under which customers who obtain valid VAT invoices will qualify for periodic rewards,” Dr. Forson told Parliament.
According to the Finance Minister, involving consumers directly in the tax collection process will help protect Ghana’s tax base and promote voluntary compliance.
“This will actively involve every Ghanaian in protecting the nation’s tax base,” he said.
“Mr. Speaker, that is how a tax culture is built, not through fear, but through participation, transparency and reward.”
The reward scheme will complement the rollout of Fiscal Electronic Devices, which the government says will strengthen VAT compliance and improve the monitoring of taxable transactions.
Dr. Forson said the pilot phase of the Fiscal Electronic Devices programme is at an advanced stage.
The government is turning to the technology amid concerns about significant losses in VAT revenue due to non-compliance and weaknesses in the collection system.
According to the Finance Minister, Ghana currently loses an estimated 60 percent of its potential VAT revenue through non-compliance and systemic inefficiencies.
“This is unacceptable. It cannot continue, and under this Government, it will not continue,” he stated.
He also called for tougher action against businesses and individuals who charge consumers VAT but fail to remit the money to the state.
“Mr. Speaker, I call on Parliament to support Government to crack down on businesses and individuals who collect VAT from taxpayers and keep it instead of remitting it to the State,” Dr. Forson said.
He explained that Fiscal Electronic Devices would help improve collections, reduce leakages and ensure businesses properly account for VAT collected from customers.
The initiative comes as the government pursues broader reforms to Ghana’s VAT system.
The administration has abolished the COVID-19 Health Recovery Levy, decoupled the GETFund and National Health Insurance levies from the VAT base and reduced the effective VAT rate from 21.9 percent to 20 percent.
It has also increased the VAT registration threshold from GH¢200,000 to GH¢750,000, removing thousands of micro and small businesses from the obligation to register for and charge VAT.
The government says its revenue strategy is focused on increasing tax receipts through improved compliance, a broader tax base and more efficient administration rather than higher tax rates.
