The Minority in Parliament is cautioning that more tax hikes may be on the way.
They warn these increases will further strain already struggling businesses across the country.
Their concerns follow the approval of the Value Added Tax (VAT) Bill 2025.
The new law scraps the flat-rate VAT system for retailers and some service providers.
It effectively raises VAT on retail goods and services from 3% to 15%.
It also increases VAT on real estate transactions from 5% to 15%.
During the debate on Wednesday, November 26, 2025, tensions were clear in Parliament.
Minority Leader Alexander Afenyo-Markin argued that the changes will hurt businesses.
He said the new structure will complicate tax compliance and worsen economic hardships.
“The burden contained therein is this: you are increasing retail services VAT from 3% to 15%. Also, real estate is going up from 5% to 15%. The revenue-neutrality language you are using is not of interest to us. You state in your own report that the introduction of this bill will help the government generate revenue. We are telling you that this bill is being brought because you need revenue,” he said.
However, the government strongly disputes the Minority’s position.
Deputy Finance Minister Thomas Nyarko Ampem rejected claims of additional tax burdens.
He insisted that the bill is designed to simplify VAT compliance, not raise taxes.
“The bill, contrary to what the Minority Leader is saying, is not imposing any new tax on Ghanaians. It is rather giving back to Ghanaians. The decision to change the treatment of the Health Insurance Levy and GETFund Levy to allow for tax-credit deductibility is giving back. The NHIL alone, by changing from a straight levy to a VAT-creditable levy, offers relief,” he explained.
The two sides remain sharply divided on the impact of the new VAT regime.
While the Minority sees rising costs and pressure on businesses, government insists on relief.
