Ghana risks losing GH¢6.4 billion if the 2025 budget abolishes the COVID-19 and E-Levy taxes, according to KPMG’s pre-budget survey. The firm emphasizes the need for tax reform, technology adoption in property collection, and focus on key economic sectors to boost fiscal sustainability and recovery.
Ghana may incur a revenue loss of approximately GH¢6.4 billion if the government eliminates the COVID-19 and E-Levy taxes in its 2025 budget. This estimate is derived from a pre-budget survey conducted by KPMG, which was presented to the Ministry of Finance. KPMG highlights that the cancellation of these levies could significantly diminish government income.
KPMG advises the government to adopt technology for better property rate management and collection, as well as to reevaluate taxation in the digital and e-commerce spheres. Furthermore, the enhancement of public financial management systems, closing gaps in public procurement, and minimizing wasteful expenditures are essential for achieving fiscal sustainability.
To ensure the success of Ghana’s 24-Hour Economy, KPMG recommends that the focus be placed on industries that can thrive with continuous operations and heightened consumer demand. These sectors include manufacturing, transportation and logistics, healthcare, retail and hospitality, and digital services.
Most survey participants expressed confidence that the government’s new policy initiatives outlined in the budget could form a foundation for economic recovery, emphasizing the necessity for strategic fiscal reform and innovation in revenue collection.
In conclusion, the potential loss of GH¢6.4 billion in revenue from canceling the E-Levy and COVID-19 Levies poses a significant risk to Ghana’s fiscal health. The recommendations from KPMG underline the importance of technological integration in tax administration, the need for strategic sectoral focus to enhance economic growth, and the essential reforms necessary to bolster public financial management and sustainability. Such measures may be vital for the country’s recovery and economic advancement.
Original Source: www.ghanaweb.com
