GRA Set to Roll Out New Tax Measures from July 1: Real Estate, Insurance, and Informal Sector in Focus

The Ghana Revenue Authority (GRA) has announced that new tax policy measures will officially take effect from July 1, 2025, as part of efforts to strengthen domestic revenue mobilisation and reduce reliance on foreign aid.

Among the key initiatives are the Modified Taxation Scheme (MTS) for informal sector players, Value Added Tax (VAT) on real estate transactions, and VAT on non-life insurance premiums. The move is intended to plug revenue leakages and broaden the tax base without introducing new taxes, according to the GRA.

Simplified Taxation for Informal Sector

The Modified Taxation Scheme introduces a tiered system for micro, small, and medium enterprises, with simplified payment structures and flexible registration options via GRA offices and mobile apps. It is governed under the Income Tax Act, 2015 (Act 896).

“These are not new taxes,” clarified Acting Commissioner-General Anthony Kwasi Sarpong. “We are only implementing existing laws more efficiently to support the economy’s reset.”

Key MTS Features Include:

● Presumptive Tax (PTI): GH¢45 quarterly for businesses earning below GH¢20,000 annually

● Turnover Tax (PTT): Flat 3% for earnings between GH¢20,000 and GH¢500,000

● Modified Cash Basis (MCB): Graduated rates with allowable deductions for higher turnovers

● Payment channels include mobile money (*222#), banks, and GRA apps

■ Real Estate Now Taxable Under VAT

Under the VAT Amendment Act, 2023 (Act 1107), estate developers are required to charge 5% VAT on the sale and rental of immovable properties, excluding residential dwellings and agricultural land. A 1% COVID-19 levy also applies.

Failure to comply attracts a 30% penalty on the amount that should have been withheld by appointed agents.

■ Insurance Premiums Also Affected

Insurance providers must now apply a 15% VAT on a range of non-life insurance policies including:

Fire, marine, liability, property, travel, burglary, and personal accident insurance

■ To ensure smooth implementation, companies are expected to:

● Update billing systems

● Train staff on VAT application

● Notify clients about pricing adjustments

● Register for VAT where applicable

These changes form part of a broader fiscal strategy to boost compliance, mobilize local resources, and stabilize the national economy amidst tightening global donor support.

GRA has reaffirmed its commitment to fairness and efficiency, emphasising that the reforms are not designed to overburden citizens but to build a sustainable tax culture.