Ghanaians are likely to face higher prices at shops, food joints, and service providers following the July 1 implementation of new tax policies by the Ghana Revenue Authority (GRA).
The measures, aimed at boosting domestic revenue, are already triggering concerns from manufacturers, traders, and analysts over their potential burden on consumers.
Among the newly enforced policies is a revised tax structure for informal sector workers such as traders, a 5% excise duty on locally produced plastic products, and a 15% tax on non-life insurance premiums.
Though the cedi’s recent stability had sparked modest hope for price relief, that optimism may soon be eroded as producers and retailers begin to factor in the tax costs.
Plastic manufacturers, for instance, have warned that the new excise levy will be fully transferred to buyers.
“This 5% excise tax is essentially a consumer tax, so the impact is 100% on the consumer,” said Ebbo Botwe, President of the Plastic Manufacturers Association. “We’ve been trying to engage the government because if the consumer disappears, so does our business.”
Vendors in Accra’s bustling markets say the trickle-down effects are already evident, particularly in the food sector.
“If prices go up, I’ll have to increase my food prices too. I might have to add one cedi per plate,” explained food vendor Solace Mensah.
Another vendor, Vital Naa Yateley Boys, voiced similar frustration: “We can’t absorb the cost. We’ll have to charge two cedis extra just to make ends meet.”
The GRA’s modified tax regime also introduces a quarterly flat tax for informal workers earning less than GH¢20,000 annually. Depending on one’s earnings, they will now pay either GH¢25 or GH¢45 every three months. But some traders, like Samuel Apau at Abeka Market, believe the system needs fine-tuning.
“They should assess our stock and daily sales before setting tax rates. A flat fee isn’t fair,” he said.
While analysts welcome the reforms, they caution that timing and public education will be crucial.
“With only six months left in the year, the government may not meet its revenue targets. Public education is key for effective compliance,” said tax analyst Francis Timore Boi.
He added that broadening the tax base is vital for long-term fiscal health: “If we can get more people to contribute fairly, we could reduce the overall tax rate from 25% to 20%. It’s a good policy—delayed, but better late than never. It presents a strong opportunity for Ghana’s fiscal stability.”
As these taxes begin to bite, consumers and businesses alike are adjusting to a new economic reality that may reshape daily spending patterns in the coming months.
