Ghana’s government has announced a major overhaul of its tax system, scrapping five “nuisance taxes” in the 2025 budget. Finance Minister Dr. Cassiel Ato Forson unveiled the tax cuts in Parliament, emphasizing their potential to boost disposable incomes and business growth.
The abolished taxes include:
- Betting Tax: A 10% withholding tax on lottery winnings
- E-Levy: A 1% Electronic Transfer Levy
- Emission Levy: A levy on industries and vehicles
- VAT on Motor Vehicle Insurance: A value-added tax on motor vehicle insurance policies
- Withholding Tax on Unprocessed Gold: A 1.5% tax on unprocessed gold from small-scale miners
To stabilize the exchange rate, the government plans to:
- Establish a gold-backed scheme, GoldBod, to increase foreign exchange reserves
- Continue foreign exchange forward auctions to stabilize the currency market
- Implement strong fiscal consolidation, reducing public sector spending and the fiscal deficit
- Promote import substitution under the 24-Hour Economy Policy
Additionally, the government aims to tackle inflation through initiatives such as:
- Implementing the Agriculture for Economic Transformation Agenda to boost food production
- Introducing targeted policies to reduce costs of essential items
- Strengthening fiscal consolidation efforts
- Ensuring exchange rate stability
- Supporting the Bank of Ghana’s monetary policy stance
These measures aim to bring lasting relief to Ghanaians by creating a more stable economic environment, reducing the cost of living, and ensuring sustainable growth.
