Ghana: 5 major taxes to be abolished by government

Ghana’s Minister of Finance, Cassiel Ato Forson, announced during the presentation of the 2025 budget to Parliament the government’s decision to abolish several so-called harmful taxes, in order to boost household purchasing power and support the country’s economic fabric.

These include the 10% tax on betting winnings introduced in 2023 by the previous government; E-Levy, a tax on electronic money transfers; the tax on industrial and vehicle emissions; VAT on car insurance policies and the tax on raw gold from small-scale mining operations.

As for the COVID-19 tax, it will be phased out this year at the latest as part of broader VAT reforms.

Tax cuts: a risky decision?

According to the Minister of Finance, eliminating these taxes would ease the financial burden on households, increase disposable income and support business growth. However, this represents a major loss of revenue.

The government intends to reduce the tax refund ceiling from 6% to 4% of total revenues, to compensate for the loss of these revenues. According to forecasts, this measure will save GHS 3.8 billion in 2025 alone.

These strategic budget adjustments, says the Ghanaian government, are aimed at creating a more favorable business environment while maintaining economic stability.

An economic renaissance on the horizon

In addition to these fiscal measures, Ghana plans to implement several ambitious projects, including the creation of a development bank for women, a $10 billion investment in infrastructure, and the establishment of the Ghana Gold Board (GOLDBOD) to regulate and manage the country’s gold resources.

This West African country is emerging from its worst economic crisis in a generation, with turbulence in the vital cocoa and gold sectors.

As soon as he came to power last January, the new president, John Dramani Mahama, promised to revive the economy and create jobs.