In a bold move to ease the financial burden on households and businesses, the Mahama administration has announced plans to abolish several taxes in the 2025 budget.
The Minister of Finance, Cassiel Ato Forson, revealed the tax cuts during his maiden budget presentation in Parliament, highlighting the positive impact these measures will have on disposable incomes and business growth.
“We will abolish the 10% withholding tax on winnings from the lottery, otherwise known as the ‘Betting Tax’; we will abolish the Electronic Transfer Levy (E-Levy) of 1%; we will abolish the Emission Levy on industries and vehicles; we will abolish the VAT on motor vehicle insurance policy; and we will abolish the 1.5% withholding tax on winning of unprocessed gold by small-scale miners,” Ato Forson announced.
“Mr. Speaker, 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,” Ato Forson stated.
This move is a significant shift in Ghana’s economic policies, aimed at promoting economic growth and reducing the financial burden on citizens.
The abolition of these taxes is expected to bring relief to many Ghanaians, particularly those who engage in mobile money transactions and online betting.
The Mahama administration’s decision to scrap these taxes is a fulfillment of its campaign promises.
During his vetting, Forson stated that he would abolish the betting tax and the e-levy in his first budget as Finance Minister, citing that they have failed to achieve their purpose.
-BY Daniel Bampoe
