Retail sales up 35.7%, VAT rises 33.6% early 2025
By Praisebell Rosemond Larbi
The country’s retail sector and tax revenues have shown strong momentum in early 2025, reflecting a rebound in consumer confidence and improved tax compliance.
According to the Bank of Ghana’s July 2025 Monetary Policy Report, domestic VAT collections rose by 33.6 per cent to GHS8.31 billion in the first five months of the year, compared to GHS6.22 billion during the same period in 2024.
The report also highlighted solid growth in retail sales, which jumped 35.7 per cent cumulatively between January and May 2025, underscoring renewed consumer activity and a gradual recovery in private consumption.
On a year-on-year basis, retail sales for May 2025 alone surged 38.6 per cent to GHS277.62 million, up from GHS200.27 million in May 2024.
Month-on-month, sales increased by 4.6 per cent, rising from GHS265.46 million in April to GHS277.62 million in May, a sign of consistent growth in household spending across major urban centres.
Similarly, domestic VAT performance remained strong in May, recording a 30.1 per cent year-on-year increase to GHS1.77 billion.
The central bank attributed these gains to improved tax administration, enhanced digital compliance systems, and higher economic activity within the retail and services sectors.
The Bank of Ghana noted that the continued rise in retail sales and VAT receipts reflects a gradual rebound in domestic demand, supported by relatively stable prices, moderate income growth, and a resilient business environment.
The report concludes that maintaining policy consistency and improving the ease of doing business will be critical to consolidating these early gains, ensuring that rising sales and VAT collections translate into broader economic growth.
