For Ghanaian businesses, the start of 2026 presents a balancing act. Companies must navigate VAT relief, monitor utility costs, and factor in inflation and currency stability as they plan operations and investments. The nation’s economic story at the dawn of the year is one of contrasts, where relief is intertwined with fresh pressures, creating what industry observers call a true mixed package for Ghana’s businesses and households. Ghanaian businesses are entering 2026 navigating a blend of tax relief and rising operational expenses, as Value Added Tax (VAT) reforms take effect alongside significant electricity and water tariff increases announced by regulators. The year opens with inflation at 6.3 percent in November and the cedi trading at approximately GH?10.51 per U.S. dollar on January 1, offering relative stability after months of currency volatility. For companies and investors, these indicators provide clearer ground for planning, yet the first quarter brings immediate financial pressures. VAT reforms, effective January 1 under the Value Added Tax Act 2025, raise the registration threshold for businesses from GH¢200,000 to GH¢750,000, eliminate the COVID-19 Health Recovery Levy, and recoup the National Health Insurance Levy and Ghana Education Trust Fund levies into the VAT base. The Ghana Revenue Authority describes the changes as measures designed to ease compliance, improve cash flow, and encourage formal sector participation. For small and medium enterprises, these reforms bring tangible administrative relief and lower effective tax rates at the start of the fiscal year. However, the relief arrives with offsetting costs. The Public Utilities Regulatory Commission has implemented its 2026 to 2030 Multi-Year Tariff Order, and electricity and water bills are rising sharply. Electricity rates for lifeline users consuming between zero and 30 kilowatt hours per month have climbed 9.86 percent to 88.37 pesewas per kilowatt hour, while water charges for households consuming up to five cubic meters have jumped 15.92 percent to 612.25 pesewas per cubic meter. For businesses and consumers, the new year begins with higher operating and living costs, challenging budgets from day one. Stakeholders across sectors have raised concerns about the tariff increases. Labour groups warn that rising utility bills could erode the 9 percent wage adjustment approved for public sector workers in 2026. The Trades Union Congress issued an ultimatum this week demanding government revise the wage package upward to offset utility costs, threatening nationwide mobilization if authorities refuse. Consumer advocates call for efficiency improvements within utilities before imposing additional financial burdens on households already stretched by inflation. The Public Utilities Regulatory Commission defended the tariff adjustments as necessary to support utility investment needs, maintain sector financial stability, and ultimately protect consumer interests. Commission officials argue that without adequate tariff levels, electricity and water providers cannot fund infrastructure improvements, maintain existing systems, or expand service coverage to underserved communities. The regulator said quarterly reviews will continue throughout the five-year period to account for factors including fuel prices, exchange rate movements, and changes in power generation mix. For the Ghana Revenue Authority, the VAT reforms represent a comprehensive restructuring of the country’s consumption tax framework. The International Monetary Fund has advocated for these changes as part of broader fiscal consolidation efforts under Ghana’s Extended Credit Facility program. By raising the registration threshold substantially, authorities expect to concentrate enforcement resources on larger taxpayers who account for the bulk of VAT collections, rather than pursuing small traders whose contributions remain minimal relative to administrative costs involved. The timing of both reforms coincides with Ghana’s broader economic recovery efforts following debt restructuring and fiscal adjustments implemented during 2024 and 2025. Government officials describe the VAT overhaul as essential to creating a business-friendly environment that encourages investment and economic expansion while maintaining revenue adequacy.