- Domestic VAT up 33.6% to GH¢8.31 billion (Jan–May 2025)
- May 2025 sales hit GH¢277.62 million, a 38.6% YoY increase
- Growth driven by stronger demand and better tax compliance
Domestic VAT collections for the first five months of 2025 grew by 33.6% year-on-year, 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 highlights strong growth in retail sales, signaling rising consumer demand and improved tax compliance.
The report indicates that cumulative retail sales between January and May 2025 rose by 35.7%, underscoring a recovery in household spending and a rebound in private consumption.
In May alone, retail sales climbed 38.6% year-on-year to GH¢277.62 million, compared to GH¢200.27 million in May 2024. On a month-to-month basis, sales increased by 4.6%, rising from GH¢265.46 million in April.
Domestic VAT collections also performed strongly in May, increasing 30.1% year-on-year to GH¢1.77 billion. This trend reflects growing economic activity, heightened consumer confidence, and more efficient tax administration.
The data suggests that consumer spending is gradually recovering, driven by stable prices and modest growth in disposable incomes.
However, analysts caution that sustaining this momentum will require continued fiscal discipline, efforts to contain inflation, and targeted policy interventions to bolster household purchasing power.
