President John Dramani Mahama has announced the introduction of legislative packages designed to implement progressive reforms in Ghana’s penal system and judicial administration. These reforms aim to reduce prison overcrowding and expedite the delivery of justice.
Highlighting the Community Service Act of 2026, President Mahama explained that non-custodial sentences will be applied to minor offences. This approach not only saves taxpayer money but also provides constructive rehabilitation options. “Instead of incarcerating individuals for minor offences, resulting in the government bearing the cost of their upkeep for actions such as theft of goods, they can instead be sentenced to perform community service for the duration of their sentence,” the President stated as he signed the Bill into law.
In addition to the Community Service Act, President Mahama has also signed ten major legislative bills into law, marking a significant step towards structural reforms aimed at accelerating economic growth, plugging revenue leakages, modernising the justice system, strengthening national security, and supporting Ghanaian workers and farmers.
These new laws cover essential sectors, including the economy, business, law enforcement, maritime security, education, and social protection. After signing the bills into law, President Mahama, joined by his Chief of Staff, Julius Debrah, PhD, and ministers of state, said the legislative push fulfils key government pledges and lays a streamlined legal foundation for sustainable national development.
Among the enactments is the Ghana Cocoa Board Act, 2026, which binds the government to its promises to transform the country’s agricultural landscape and guarantee fair returns for cocoa farmers.
“I’m sure our cocoa farmers will be happy,” President Mahama stated. “It incorporates the reform of the cocoa sector and includes our promise that we’re going to process at least 50% of our cocoa beans locally. Aside from that, the promise we made to farmers that they will earn 70% of the world market price of cocoa is also contained in this bill. So, promise made, promise fulfilled.”
To protect low-income households, the President assented to the Income Tax Amendment Act, 2026, which removes tax burdens from low-wage workers.
“This Act exempts people who earn the minimum wage and below from paying income tax. Anybody who is on the minimum wage or below the minimum wage is exempt,” President Mahama declared.
Local industrial growth received a major boost through the Excise Act, 2026, which consolidates excise duties, blocks revenue leakages on imported dutiable goods like alcohol and cigarettes, and grants targeted tax exemptions to domestic processors.
“Importantly, it gives exemption from paying excise tax to local manufacturers of fruit juices,” the President explained. “It is supposed to give them an incentive in their production. If you produce fruit juices locally, this Act exempts you from paying excise duty.”
To improve fiscal discipline and restore revenue efficiency, President Mahama assented to three related financial and commercial laws: The Customs Act, 2026, which codifies all existing customs laws into a single, unified statute to enhance efficiency and block revenue loss.
“This voluminous document incorporates all the amendments that have been done over the years into one single document. It makes it simpler to administer and to make it more efficient. And it will seal the loopholes that have made the government lose a lot of revenue as a result of the scattered nature of the law,” President Mahama noted.
The Energy Sector Levies Amendment Act, 2026, ends widespread abuses of fuel oil exemptions previously exploited by factories and maritime vessel operators. Under the new law, operators must pay taxes upfront and present verifiable proof for reimbursement.
The Value Added Tax (VAT) Amendment Act, 2026, adjusts VAT administration to align with recent monetary policy initiatives. Large-scale gold mining companies that surrender 30 percent of their gold output to the Bank of Ghana are exempt from paying VAT on those quantities.
