Ghana’s 2025 Pre-Budget Survey reveals business priorities, highlighting strong opposition to the E-levy and COVID-19 levy, with 50% against them. There is significant support for a 24-Hour Economy Policy. Business optimism for the budget is high, driven by anticipated tax relief. The government plans to announce the removal of certain levies on March 11, 2025, as part of a broader economic revitalization initiative.
The 2025 Pre-Budget Survey conducted by KPMG and UNDP has identified critical priorities for Ghanaian businesses as the government prepares its fiscal plans. The survey, which included responses from 233 companies across various sectors, revealed a strong push among business owners for the abolition of both the E-levy and COVID-19 levy, with 50% of participants opposing these charges. Conversely, there is considerable support, at 72%, for implementing a 24-Hour Economy Policy to drive economic growth.
Business leaders express optimism about the 2025 budget, with 80% anticipating that the fiscal framework will boost economic recovery. This positive sentiment is largely based on expected tax relief measures and the prospective success of the 24-Hour Economy initiative. However, concerns linger regarding the potential revenue losses associated with the elimination of these levies. To mitigate financial shortfalls, businesses have proposed alternative approaches, including broadening the tax base to include the informal sector, reinstating road tolls, and privatizing underperforming state-owned enterprises.
Businesses have also emphasized the importance of support for the successful implementation of the 24-Hour Economy Policy. Recommended measures include enhancing security, ensuring a reliable power supply, improving transport infrastructure, and providing tax incentives for businesses.
In a related announcement, Felix Kwakye Ofosu, the Minister of State for Government Communications, revealed that the government intends to eliminate the E-levy and COVID-19 levy in the upcoming budget presentation scheduled for March 11, 2025. This action aligns with a broader 120-day Social Contract that encompasses 26 commitments aimed at revitalizing Ghana’s economy.
The forthcoming budget is expected to feature other significant proposals, such as a 10% tax on betting winnings, the introduction of an emissions levy, the establishment of a Women’s Development Bank, and policies to create new jobs. Additionally, the government plans to adopt a ‘No-Academic-Fee’ policy for first-year students at public universities, representing a substantial change in education funding.
The 2025 Pre-Budget Survey underscores the priorities of Ghanaian businesses, highlighting their desire for the removal of certain levies and greater support for economic initiatives like the 24-Hour Economy Policy. While optimism exists for the forthcoming budget, businesses also recognize the need for robust strategies and support measures to ensure sustainable economic recovery. The government’s commitments, as outlined by Minister Felix Kwakye Ofosu, herald an evolving fiscal landscape aimed at revitalizing the economy.
Original Source: www.ghanaweb.com
