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Cross-border digital VAT system expected to generate GH¢2.3bn annually-Ato Forson

Government is set to roll out a cross-border digital Value Added Tax (VAT) collection system expected to generate about GH¢2.3 billion in its first full year of operation, Finance Minister Dr. Cassiel Ato Forson has announced.

Presenting the 2026 Mid-Year Budget Review in Parliament, Dr. Forson said the system, which was successfully piloted in April 2026, had proven to be functional, stable, secure and compliant with regulatory requirements.

He explained that the initiative is aimed at ensuring that non-resident digital platforms earning income from Ghanaian consumers contribute their fair share of taxes to the economy.

“Upon full deployment, the system is projected to generate about GH¢2.3 billion in its first full year of operation, with revenue expected to grow by about 20 percent annually,” Dr. Forson stated.

According to him, the reform represents a sustainable approach to increasing domestic revenue without raising tax rates.

“This is sustainable revenue without increasing tax rates. It simply ensures that cross-border digital platforms earning income from Ghanaian customers pay their fair share of taxes,” he said.

The Finance Minister noted that the digital VAT system forms part of government’s broader strategy to leverage technology to improve tax compliance, reduce revenue leakages and strengthen revenue administration.

He added that the government is also deploying fiscal electronic devices and introducing a VAT reward scheme to encourage compliance and involve citizens in protecting the country’s tax base.

Dr. Forson stressed that the reforms are designed to build a stronger tax culture based on participation, transparency and accountability rather than increased taxation.

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