By Seli Baisie
Ghana’s government has announced the removal of five taxes as part of efforts to reduce the cost of living and boost economic confidence.
Presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025, Finance Minister Dr. Cassiel Ato Forson, explained that these taxes, introduced by the previous administration, failed to generate the expected revenue and worsened economic hardships.
“The removal of these taxes is part of our strategy to ease the cost of living and restore confidence in the economy,” Dr. Forson told lawmakers.
One of the most notable taxes being scrapped is the Electronic Transfer Levy (E-Levy), introduced in 2022.
The levy faced widespread opposition, with many Ghanaians arguing that it unfairly targeted low-income earners and small businesses.
In addition to these tax cuts, Dr. Forson announced that the government would introduce special tax reliefs for businesses and traders to encourage economic growth.
“Our goal is to create a tax system that supports production and business expansion without putting too much pressure on individuals and small businesses,” he said.
He also stressed that rather than introducing new taxes, the government would focus on improving revenue collection. This approach, he said, would ensure that enough funds are raised for national development without increasing the financial burden on citizens.
The removal of these taxes is expected to bring relief to individuals and businesses as the government aims to implement reforms to strengthen the economy.
Here are the taxes that will be abolished:
- The 10% withholding tax on lottery winnings, also known as the ‘Betting Tax’
- The 1% Electronic Transfer Levy (E-Levy)
- The Emission Levy on industries and vehicles
- The VAT on motor vehicle insurance policies
- The 1.5% withholding tax on unprocessed gold winnings by small-scale miners
