Domestic VAT Collections Rise 33.6% to GHS 8.31bn
Domestic Value Added Tax (VAT) collections for the first five months of 2025 rose by 33.6 percent to GH¢8.31 billion, up from GH¢6.22 billion recorded during the same period in 2024, according to the Bank of Ghana’s July 2025 Monetary Policy Report.
The increase in VAT receipts, the report noted, coincided with solid growth in retail sales, indicating stronger consumer demand and improved tax compliance across the economy.
Retail sales data showed a cumulative increase of 35.7 percent between January and May 2025, reflecting a recovery in private consumption and higher household spending. On a year-on-year basis, sales for May alone rose by 38.6 percent to GH¢277.62 million, compared to GH¢200.27 million in May 2024. Month-on-month, sales improved by 4.6 percent, rising from GH¢265.46 million in April to GH¢277.62 million in May.
Domestic VAT performance in May also remained robust, increasing by 30.1 percent year-on-year to GH¢1.77 billion. The central bank attributed this growth trend in VAT and retail activity to enhanced economic performance, stronger consumer confidence, and improved tax administration.
“The uptick in consumer spending reflects a gradual rebound in domestic demand, supported by stable prices and moderate growth in disposable incomes,” the report stated.
Despite the positive developments, analysts caution that sustaining the current momentum will hinge on maintaining fiscal discipline, curbing inflationary pressures, and implementing targeted policy measures to support household purchasing power.
