Retail Sales, VAT Collections Surge Over 30% in First Five Months of 2025

Retail activity and tax revenue have seen significant gains in 2025, with both domestic VAT collections and retail sales climbing sharply in the first five months of the year.

According to the Bank of Ghana’s July Monetary Policy Report, domestic VAT collections rose by 33.6% to GH¢8.31 billion between January and May 2025, compared to GH¢6.22 billion in the same period last year.

Retail sales also registered solid growth, surging by 35.7% year-to-date. This indicates stronger household spending and a recovery in private consumption. In May alone, retail sales jumped 38.6% year-on-year to GH¢277.62 million, up from GH¢200.27 million in May 2024. On a monthly basis, sales grew 4.6% from April’s GH¢265.46 million.

VAT revenue mirrored this momentum, with May collections rising 30.1% year-on-year to GH¢1.77 billion. Analysts attribute the strong performance in both retail sales and VAT to rising consumer confidence, improved tax compliance, and a pickup in domestic economic activity.

The central bank noted that the upward trend reflects stable prices, moderate growth in disposable incomes, and a gradual rebound in consumer demand.

However, economists caution that sustaining this growth path will hinge on government’s ability to maintain fiscal discipline, control inflation, and implement policies that protect household purchasing power.