Ghana’s Finance Minister, Dr. Cassiel Ato Forson, announced the abolition of six taxes, fulfilling a promise in the NDC’s 2024 manifesto. Taxes to be abolished include the Betting tax, E-Levy, Emission Levy, VAT on Motor Vehicle Insurance Policies, Tax on unprocessed Gold, and the COVID-19 Levy. These removals aim to ease financial burdens and stimulate economic growth for 2025.
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced the abolition of six contentious taxes in the upcoming 2025 budget, fulfilling a promise from the National Democratic Congress (NDC) manifesto for 2024. The taxes slated for removal 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.
In his presentation to Parliament, Dr. Forson articulated that eliminating these so-called “nuisance” taxes is essential for achieving the nation’s fiscal goals for 2025. He stated that the government is proposing revenue measures aimed at bolstering the economy and enhancing the financial circumstances of Ghana’s populace.
The specific taxes to be abolished include: the 10% withholding tax on lottery winnings, the 1% Electronic Transfer Levy on electronic transactions, the Emission Levy imposed on industries and vehicles, VAT on motor vehicle insurance, and the 1.5% withholding tax on unprocessed gold sales by small-scale miners. The COVID-19 Levy will be phased out later this year as part of broader VAT reforms.
Dr. Forson emphasized that these tax removals will alleviate financial pressures on households, augment disposable income, and foster business growth, while also aiming to improve tax compliance. To offset the expected revenue loss, the government plans to adjust the tax refund ceiling, thus aiming to save approximately GH¢3.8 billion in 2025.
In conclusion, Ghana’s decision to remove these taxes reflects a significant shift in fiscal policy aimed at stimulating economic growth and providing relief to citizens. The anticipated benefits of these measures, including enhanced disposable incomes and a more favorable business environment, align with the government’s broader economic stability objectives.
In summary, the abolition of six contentious taxes by the Ghanaian government marks a pivotal shift in fiscal policy, aiming to alleviate financial burdens on citizens while promoting economic growth. The expected relief for households and businesses, alongside reforms in tax refund ceilings, demonstrates a strategic approach by the NDC to enhance fiscal efficiency and stimulate the economy.
Original Source: africa.businessinsider.com
