Key Points
- Ghana will eliminate five taxes, including the E-Levy and betting tax.
- The move aims to support businesses and lower financial burdens.
- The government will introduce new revenue plans to maintain economic balance.
Ghana’s government is set to eliminate five key taxes as part of its 2025 budget. Finance Minister Dr. Cassiel Ato Forson said the decision would ease financial strain on families and businesses.
During the budget presentation, Dr. Forson explained that removing these taxes will help businesses expand and encourage tax compliance. He added that new revenue plans will cover the expected shortfall.
Though he did not give a specific date, he assured that the NDC-led government would follow through on its campaign promise to abolish these taxes.
Five taxes set for elimination
1. Electronic Transfer Levy (E-Levy)
The government plans to eliminate the one percent charge on mobile money and digital transactions. This tax has been widely criticized for making transactions more expensive.
2. Betting Tax
A 10 percent withholding tax on lottery and betting winnings will be scrapped. Many Ghanaians pushed back against this tax, arguing that it unfairly targeted low-income earners.
3. Emission Levy
This tax placed a financial burden on vehicle owners and industries by charging for carbon emissions. While introduced to support environmental reforms, it increased costs for businesses and individuals.
4. VAT on Motor Vehicle Insurance
The 21 percent VAT on non-life insurance, including motor coverage, will be removed. This tax drove up insurance costs for car owners and businesses, making coverage less affordable.
5. Tax on Small-Scale Gold Mining
The five percent tax on unprocessed gold mining will be abolished. Small-scale miners argued that this tax reduced profits and made legal mining less attractive.
What this means for businesses and citizens
Dr. Forson stressed that these tax cuts will make life easier for Ghanaians and encourage investment. However, he acknowledged that the government will introduce other revenue measures to maintain economic stability.
Business owners have welcomed the news, but some economists warn that Ghana must find alternative ways to balance its budget without these taxes.
