GRA Plans to Cut VAT Gap by Half by 2028

The Ghana Revenue Authority (GRA) says it is targeting a significant reduction in the country’s Value Added Tax (VAT) gap, from the current 60% to about 30% by the end of 2028.

Commissioner for the Domestic Tax Revenue Division of the GRA, Dr Martin Kolbil Yamborigya, said the target forms part of the Authority’s VAT Strategic Plan aimed at improving compliance and increasing VAT revenue.

“According to our VAT strategic plan, we are hoping that between now and the end of 2028 we should be able to close this gap from the current 60% to about 30%,” he said.

Dr Yamborigya made the remarks while speaking to the media on the sidelines of the launch of the VAT Compliance Campaign. He had earlier joined GRA officials on compliance visits to businesses at the Accra Mall.

He explained that achieving the target would require the Authority to increase VAT collections from the existing tax base while encouraging broader compliance among businesses and individuals.

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“That means that at least we should be able to collect 30% more in addition to what we are currently collecting,” he added.

According to the Commissioner, the long-term goal is to establish a culture where taxpayers consistently meet their VAT obligations rather than relying mainly on enforcement.

“In the long run we expect every Ghanaian to comply so that the tax will be collected,” he said.

GRA prioritises education and engagement

Dr Yamborigya stressed that the ongoing VAT Compliance Campaign is not intended to intimidate businesses or put them at a disadvantage.

“This campaign is not meant to harass businesses and we don’t also intend to disadvantage any business,” he stated.

During compliance visits to businesses at the Accra Mall, GRA officials reportedly identified cases where VAT invoices were not being consistently issued to customers.

“We realized that they were not religiously issuing VAT invoices and we only encourage them to make sure they do the right thing,” Dr Yamborigya explained.

He said the GRA chose to educate and engage the affected businesses instead of immediately imposing punitive measures.

“If we were not to show human face, we probably would have called for their arrest immediately,” he said.

The Commissioner noted that the Authority would continue to combine education and engagement with enforcement, particularly in cases where deliberate non-compliance is established.

“We are going to be more engaging, we are going to be more educative. But where we find out that the non-compliance is deliberate, that’s what we apply,” he stated.

Dr Yamborigya said the approach is intended to help taxpayers understand their responsibilities and provide them with an opportunity to comply, while deliberate violations would be addressed through the appropriate measures.

“So we continue to show human face by ensuring that people know and understand their tax obligations and comply,” he added.