The Ghanaian government, under the leadership of President John Dramani Mahama, has taken decisive action to alleviate the financial burden on its citizens and businesses by repealing a series of taxes deemed burdensome and detrimental to economic growth. These repealed taxes include the Electronic Transaction Levy (E-Levy), the 10% withholding tax on game winnings (Betting Tax), and the Emissions Tax. This move fulfills a key campaign promise made by President Mahama and reflects his administration’s commitment to fostering a more favorable economic environment for all Ghanaians.
The E-Levy, introduced by the previous administration, had been a particularly contentious issue, drawing widespread criticism for its perceived negative impact on electronic transactions and financial inclusion. Its abolishment, as announced by Finance Minister Dr. Cassiel Ato Forson, is projected to save Ghanaians approximately 2 billion cedis, providing much-needed relief to households and businesses alike. The removal of the Betting Tax is also expected to stimulate the gaming industry and generate increased revenue through other avenues. Similarly, the repeal of the Emissions Tax signals the government’s commitment to addressing environmental concerns while acknowledging the potential economic strain it placed on businesses.
The repeal of these taxes marks a significant shift in the government’s fiscal policy, prioritizing economic relief and growth. By removing these financial barriers, the administration aims to encourage investment, stimulate economic activity, and improve the overall financial well-being of Ghanaians. This action aligns with the broader economic strategy outlined in the 2025 budget statement, which emphasizes measures to reduce the tax burden and create a more conducive environment for businesses to thrive.
Beyond the E-Levy, Betting Tax, and Emissions Tax, the government has also taken steps to abolish other taxes deemed unfavorable to economic growth. These include the Value Added Tax (VAT) on motor vehicle insurance policies and the 1.5% withholding tax on winnings from unprocessed gold by small-scale miners. These additional measures further demonstrate the government’s commitment to streamlining the tax system and removing obstacles to economic progress, particularly within key sectors like insurance and small-scale mining.
The decision to repeal these taxes follows a comprehensive review of the existing tax regime and extensive consultations with stakeholders. The government recognized the cumulative impact of these taxes on individuals and businesses and determined that their removal was essential to fostering a more robust and inclusive economy. This approach emphasizes a more strategic and targeted application of taxes, focusing on areas that can generate sustainable revenue without unduly burdening the population or hindering economic activity.
The move to repeal these taxes has been widely welcomed by the public and various business associations, signaling a renewed sense of optimism regarding the country’s economic prospects. It is anticipated that these changes will not only provide immediate financial relief but also contribute to long-term economic growth and stability, creating a more equitable and prosperous future for all Ghanaians. This action underscores the government’s proactive approach to fiscal policy and its dedication to fostering an economic landscape that supports sustainable development and shared prosperity.
