During the budget discussion for 2025, Finance Minister Dr. Cassiel Ato Forson indicated that the government plans to eliminate several burdensome taxes that were established by the previous administration of the New Patriotic Party (NPP).
He stated that the aim of removing these taxes is to lighten the financial load on families, encourage business development within the nation, and enhance tax adherence.
While addressing Parliament on Tuesday, March 11, 2025, Dr. Forson mentioned that the government is putting forward revenue strategies to meet the fiscal goals for 2025.
He also pointed out that these strategies are focused on closing existing gaps and compensating for the revenue shortfall that will occur after eliminating these taxes.
Although the minister did not specify a timeline for the removal of these taxes, he promised that the commitment made during the National Democratic Congress (NDC) campaign to abolish them would be honored.
Now, let us explore the taxes the government intends to remove:
Electronic Transfer Levy (E-Levy)
The administration has declared its intention to eliminate the 1% charge on electronic transactions.
This fee was applied to mobile money transfers among wallets of the same electronic money provider, transfers from one provider to another, deposits from bank accounts into mobile wallets, withdrawals from mobile wallets to bank accounts, and transfers made via a digital platform that originate from a personal bank account.
Betting Tax
The previous government also introduced a 10% withholding tax on winnings from lotteries and betting.
This tax, which is automatically deducted at the time of payout for all betting activities and lottery wins, met with significant resistance from the public.
Emission Levy
The Emission Levy imposes taxes on carbon emissions produced by certain industries and vehicles. It was created to generate funds for supporting various sector reforms and fostering a sustainable environment.
VAT on Motor Vehicle Insurance Policies
The former government announced a 21% VAT rate on non-life insurance during the budget for 2024.
This levy, aimed at insurance companies, implements a 21% VAT on the provision of non-life insurance products, affecting various categories such as Motor Insurance, Fire coverage, Liability Insurance, Marine Insurance, and mandatory insurance.
Tax on Small-Scale Miners for Unprocessed Gold
The Minerals and Mining Operations Tax (Mineral Royalty) applies to the income of individuals or organizations engaged in mining activities, with a tax rate set at 5%.
This rate is levied on the total income generated from mining operations.
