Ghana’s domestic VAT collections rose by 33.6% in the first five months of 2025, reaching GH¢8.31 billion—up from 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 noted strong growth in retail sales over the same timeframe.
The increase signals a boost in consumer demand alongside improvements in tax compliance and administration.
Retail sales recorded a cumulative 35.7% rise between January and May 2025, reflecting a steady rebound in household spending and private consumption.
In May alone, year-on-year retail sales rose by 38.6%, reaching GH¢277.62 million compared to GH¢200.27 million in May 2024. On a monthly basis, sales grew by 4.6%, up from GH¢265.46 million in April.
May also saw a 30.1% year-on-year increase in domestic VAT collections, totaling GH¢1.77 billion. The rise in both VAT revenue and retail activity is attributed to stronger consumer confidence, improved economic conditions, and enhanced tax enforcement.
The data suggests that domestic demand is recovering, supported by stable prices and moderate growth in disposable incomes.
However, analysts caution that maintaining this positive trend will require continued fiscal discipline, efforts to control inflation, and targeted policies to support household purchasing power.
