Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has revealed plans to scrap five nuisance taxes as part of the government’s revenue strategy outlined in the 2025 Budget proposal presented to Parliament.
According to Dr. Forson, this move is in line with government’s manifesto promise and efforts to reduce the financial burden on citizens and businesses.
Dr. Cassiel Ato Forson, announced in Parliament on Tuesday, March 11, 2025, that despite the government’s commitment to increasing non-oil tax revenue by 0.6% of GDP under the IMF-supported program, five nuisance taxes will be removed. This move aims to boost disposable incomes, foster business growth, and improve tax compliance.
The government has abolished the following five taxes deemed unnecessary:
The 10% withholding tax on lottery winnings (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.
According to Dr. Forson, the removal of these taxes is expected to provide relief to households and give a boost to economic growth.
The Finance Minister, Dr. Cassiel Ato Forson, disclosed that between 2017 and 2024, GHS16.6 billion (57%) of the Tax Refund Account was misused, contravening the Revenue Administration Act, 2016 (Act 915) and the Public Financial Management Act, 2016 (Act 921).
In response to the misuse, the government is lowering the tax refund cap from 6% to 4% of Total Revenue, aligning with Section 69 of the Revenue Administration Act.
According to Dr. Forson, this move is in line with government’s manifesto promise and efforts to reduce the financial burden on citizens and businesses.
Dr. Cassiel Ato Forson, announced in Parliament on Tuesday, March 11, 2025, that despite the government’s commitment to increasing non-oil tax revenue by 0.6% of GDP under the IMF-supported program, five nuisance taxes will be removed. This move aims to boost disposable incomes, foster business growth, and improve tax compliance.
The government has abolished the following five taxes deemed unnecessary:
The 10% withholding tax on lottery winnings (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.
According to Dr. Forson, the removal of these taxes is expected to provide relief to households and give a boost to economic growth.
The Finance Minister, Dr. Cassiel Ato Forson, disclosed that between 2017 and 2024, GHS16.6 billion (57%) of the Tax Refund Account was misused, contravening the Revenue Administration Act, 2016 (Act 915) and the Public Financial Management Act, 2016 (Act 921).
In response to the misuse, the government is lowering the tax refund cap from 6% to 4% of Total Revenue, aligning with Section 69 of the Revenue Administration Act.
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