By: Belinda Nketia
The Finance Minister, Dr. Cassiel Ato Forson, as part of the 2025 budget presentation to Parliament, has announced the removal of several taxes, including the widely discussed Electronic Transfer Levy (E-levy) and Betting Tax, in a bid to ease the financial burden on households and foster business growth.
Among the taxes set for abolition are the 10% withholding tax on lottery winnings, commonly known as the betting tax, the 1% e-levy on digital transactions, and the 10% withholding tax on betting activities. The government will also remove the Emissions Levy on industries and vehicles, VAT on motor vehicle insurance policies, and the 1.5% withholding tax on unprocessed gold by small-scale miners.
Dr. Forson, speaking on the rationale behind these removals, said the government’s focus is to reduce the financial pressures faced by Ghanaians.
“We have programmed the following nuisance taxes for removal in line with our manifesto promise. The removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance” Dr. Ato Forson said.
The taxes that are now being scrapped were introduced during previous administrations as part of a broader strategy to increase government revenue and widen the tax base. The e-levy, which was introduced in 2022, was designed to tax mobile money transactions and other digital transfers, aiming to capitalize on the growth of the digital economy.
The betting tax, which taxed lottery and gambling winnings, was introduced as a means of tapping into the lucrative betting industry. The emission levy, or ‘ehusie’ tax, was part of an environmental initiative, while the VAT on motor vehicle insurance policies was seen as an additional source of revenue.
READ ALSO
The Finance Minister’s statement was welcomed by various sectors, particularly those in the business and mining industries, where taxes such as the withholding tax on gold had been seen as burdensome. The 1 percent e-levy, which had faced strong opposition from mobile money users, will also be removed, making digital transactions more affordable for the public.
The tax removal proposals will now be debated and reviewed by Parliament before being officially enacted later this year. If approved, these measures are expected to bring significant financial relief to households and businesses across Ghana as projected by the Finance Minister.
EXCERPTS OF WHAT THE FINANCE MINISTER SAID
“Mr. Speaker:
i we will abolish the 10% withholding tax on winnings from lottery, otherwise known as the “Betting Tax”;
ii we will abolish the Electronic Transfer Levy (ELevy) of 1%;
iii we will abolish the Emission Levy on industries and vehicles;
iv we will abolish the VAT on motor vehicle insurance policy; and
v we will abolish the 1.5% withholding tax on winning of unprocessed gold by small-scale miners.
2 Responses