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Ghana’s VAT collections and retail sales showed strong growth in the first five months of 2025, signaling economic recovery, improved consumer confidence, and better tax compliance, according to the Bank of Ghana’s July report.
From January to May 2025, VAT revenue rose by 33.6% to GH¢8.31 billion (up from GH¢6.22 billion in 2024), while retail sales increased by 35.7%, reflecting higher household spending and revived private consumption.
In May alone, retail sales surged 38.6% year-on-year to GH¢277.62 million, and VAT collections rose by 30.1% to GH¢1.77 billion. Monthly growth was also positive, with retail sales up 4.6% from April.
The Bank credits these gains to stronger economic activity, rising incomes, stable inflation, and improved tax administration. Increased sales are driven by higher purchase volumes, not just prices, indicating real economic progress.
Compared to a difficult 2024 marked by inflation and currency volatility, 2025 shows clear signs of stabilization. The cedi’s recent stability has helped control import costs and supported purchasing power.
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Analysts warn that maintaining this momentum will require sound fiscal policy, inflation control, and continued support for consumers and businesses. The Ghana Revenue Authority’s digital reforms have boosted tax compliance, helping secure vital public revenue without dampening economic activity.
While the outlook is positive, sustaining growth will need consistent policies and long-term economic support.