Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced plans to abolish six contentious taxes, aligning with the National Democratic Congress’s 2024 manifesto promise. The move aims to ease the financial burden on households, increase disposable income, and support business growth.
The six taxes slated for abolition include the Betting Tax, E-Levy, Emission Levy, VAT on Motor Vehicle Insurance Policies, Tax on Unprocessed Gold from Small-Scale Miners, and the COVID-19 Levy. Dr. Forson emphasized that removing these taxes is crucial to achieving Ghana’s fiscal targets for 2025.
The Betting Tax, introduced in 2023, imposed a 10% withholding tax on bet winnings. The E-Levy, a widely unpopular levy on electronic money transfers, will also be removed.
Other taxes, such as the Emission Levy, VAT on Motor Vehicle Insurance Policies, and Tax on Unprocessed Gold from Small-Scale Miners, will be abolished immediately, while the COVID-19 Levy will be phased out later this year.
To compensate for lost revenue, the government will reduce the tax refund ceiling from 6% to 4% of total revenue. This measure is projected to save GH¢3.8 billion in 2025 alone, covering the revenue shortfall from the removal of the E-Levy and Betting Tax.
With these strategic fiscal adjustments, the government aims to create a more favourable business environment while maintaining economic stability.
