In a significant move towards tax reform, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has presented eight bills to Parliament, aiming to abolish what he termed “nuisance taxes”. These taxes, perceived as burdensome to the Ghanaian populace, include the controversial Electronic Transaction Levy (E-Levy), a tax on electronic transactions, the 10% withholding tax on winnings from lottery and betting activities, and the National Health Insurance Levy. The proposed legislation represents a substantial shift in the country’s fiscal policy, promising to alleviate financial pressures on individuals and businesses. These bills have been referred to the Parliamentary Finance Committee for detailed review and subsequent recommendation to the full House for deliberation and potential passage.
The eight bills encompass a range of amendments and repeals, targeting specific taxes and levies. The Electronic Transfer Levy (Repeal) Bill, 2025, seeks to entirely remove the E-Levy, a tax that has sparked considerable public debate since its introduction. Other bills, such as the Ghana Infrastructure Investment Fund (Amendment) Bill, 2025, the Revenue Administration (Amendment) Bill, 2025, and the Special Import Levy (Amendment) Bill, 2025, suggest targeted modifications to existing legislation, potentially streamlining revenue collection and adjusting import duties. Furthermore, the Emissions Levy (Repeal) Bill, 2025, signals a potential shift in environmental policy. Completing the package are the Income Tax (Amendment) Bill, 2025, the Growth and Sustainability Levy (Amendment) Bill, 2025, and the Earmarked Funds Capping and Realignment (Amendment) Bill, 2025, all aiming to refine existing fiscal mechanisms and potentially redirect resources.
Dr. Forson’s presentation of these bills marks a decisive step towards fulfilling a key campaign promise of the Mahama-led administration: reducing the tax burden on Ghanaians. This move aligns with the National Democratic Congress (NDC) manifesto pledge to ease financial pressures faced by citizens. The proposed repeals and amendments aim to stimulate economic activity by leaving more disposable income in the hands of individuals and businesses, potentially boosting consumer spending and investment. By targeting specific taxes perceived as hindering economic growth and impacting the everyday lives of Ghanaians, the government seeks to foster a more conducive environment for economic prosperity.
The abolishment of the E-Levy represents a particularly noteworthy aspect of the proposed legislation. This tax, levied on electronic transactions, has been the subject of significant public discourse, with concerns raised about its impact on businesses and individuals, particularly those reliant on digital financial services. Its removal signals a responsiveness to public sentiment and a commitment to re-evaluating fiscal policies that may hinder economic inclusion. Similarly, the removal of the withholding tax on lottery and betting winnings suggests a reconsideration of revenue streams and their potential impact on particular sectors.
The proposed amendments to other levies and taxes, such as the Special Import Levy and the Growth and Sustainability Levy, indicate a broader effort to streamline the tax system and optimize revenue generation. These adjustments could involve revisions to tax rates, exemptions, and administrative procedures, aiming to enhance efficiency and transparency in tax collection. The Earmarked Funds Capping and Realignment (Amendment) Bill, 2025, suggests a potential restructuring of how specific funds are allocated and utilized, potentially prioritizing key sectors and ensuring efficient use of public resources.
The submission of these bills to Parliament initiates a crucial stage in the legislative process. The Finance Committee’s role in reviewing the proposed legislation will be vital in assessing the potential economic and social impacts of the repeals and amendments. Their recommendations will inform the subsequent parliamentary debate and ultimately determine the fate of these proposed changes to Ghana’s tax landscape. The government’s commitment to tax reform, as embodied in these bills, is a significant development with far-reaching implications for the Ghanaian economy and its citizens. The outcome of the legislative process will be closely watched by businesses, individuals, and observers of Ghana’s economic trajectory.
