Domestic Value Added Tax (VAT) collections in Ghana saw a remarkable surge in the first five months of 2025, rising by 33.6 percent to GH¢8.31 billion compared to GH¢6.22 billion during the same period in 2024.
This is according to the Bank of Ghana’s July Monetary Policy Report, which also highlighted robust growth in retail sales alongside the VAT spike.
The report reveals that retail sales grew by an impressive 35.7 percent cumulatively between January and May 2025, underscoring a significant recovery in private consumption and increased household spending. On a year-on-year basis, May 2025 sales alone jumped 38.6 percent to GH¢277.62 million, up from GH¢200.27 million in May 2024. Month-on-month, retail activity also improved, climbing 4.6 percent from GH¢265.46 million in April to GH¢277.62 million in May.
VAT collections for May reflected this positive trend, rising 30.1 percent year-on-year to reach GH¢1.77 billion. The Bank of Ghana attributes these gains to enhanced economic activity, stronger consumer confidence, and improved tax administration, which have all contributed to the upward trajectory in both VAT and retail sales.
The data suggests that the increase in consumer spending reflects a gradual rebound in domestic demand, supported by stable prices and moderate growth in disposable incomes. However, analysts caution that sustaining this momentum will require ongoing fiscal discipline, efforts to curb inflation, and policies aimed at supporting household purchasing power.
The latest figures paint a picture of a recovering economy, with rising VAT and retail sales signaling stronger demand and improved compliance in Ghana’s domestic marketplace.
Source: Apexnewsgh.com
