Parliament has approved the government’s request to engage a service provider to support the implementation of a multi-year Fiscal Electronic Device (FED) Policy for the Ghana Revenue Authority (GRA).
The approval is expected to pave the way for the government to intensify efforts to modernise Value Added Tax (VAT) administration, improve tax compliance and reduce revenue leakages through the use of digital technology.
The request was presented to Parliament by the Minister for Finance, Dr Cassiel Ato Baah Forson, on Thursday, July 23, 2026. It was subsequently referred to the Finance Committee for consideration and report.
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In its report to Parliament, the Finance Committee recommended that the House approve the request to engage a service provider to assist with the implementation of the Fiscal Electronic Device Policy in accordance with Section 33(1) of the Public Financial Management Act, 2016 (Act 921).
Fiscal Electronic Device Policy to modernise VAT administration
The Fiscal Electronic Device Policy is intended to strengthen Ghana’s VAT administration by ensuring secure and tamper-proof recording of sales transactions at points of sale, particularly in cash-intensive sectors of the economy.
The policy is backed by the Taxation (Use of Fiscal Electronic Device) Act, 2018 (Act 966), which made the use of Fiscal Electronic Devices mandatory for specified taxable persons.
However, despite the legal framework, the policy has not been fully operationalised, limiting its impact on tax compliance and domestic revenue mobilisation.
The Ghana Revenue Authority subsequently introduced the Electronic VAT (e-VAT) system in 2022 following delays in implementing the Fiscal Electronic Device Policy.
According to the Finance Committee’s report, the e-VAT system has contributed to improvements in tax administration but has not fully addressed challenges such as invoice forgery, sales suppression, and under- and over-declaration of taxable transactions.
40,000 devices to be deployed
Under the proposed Fiscal Electronic Device Policy, about 40,000 devices are expected to be deployed during the initial implementation phase.
The implementation timeline is expected to commence after the completion of the pilot phase in August 2026.
The system is expected to create immutable transaction records, strengthen audit capabilities, improve real-time monitoring of sales and enhance the traceability of goods and services.
According to projections presented to Parliament, successful implementation could reduce Ghana’s VAT gap from approximately 60 per cent to 25 per cent within five years and generate about GH¢7.2 billion in additional VAT revenue annually.
The additional revenue is projected to represent at least 30 per cent growth in VAT collections.
While supporting the Fiscal Electronic Device Policy, the Finance Committee stressed the need for strong cybersecurity, data protection and information governance measures.
The Committee said the GRA must ensure that taxpayer information is properly protected to maintain public confidence in the digital tax administration system.
Minority rejected approval
The Minority New Patriotic Party (NPP), however, rejected the request for approval, describing the move as a “blank cheque” due to the absence of key project details.
According to the Caucus, it is not against the fiscal electronic devices project but objected to Parliament approving it without knowing the cost, timeline, contractor, and yearly financial implications.
The government’s request, the Minority argued, did not provide enough information for Parliament to properly assess the commitment.
The side stressed that approving the request without those details would amount to giving government unrestricted authority over a major financial commitment.