The KPMG/UNDP 2025 Pre-Budget Survey provides valuable insights into the expectations and recommendations of Ghanaian businesses regarding the upcoming 2025 budget. A significant majority, over 50%, advocate for the removal of the E-levy and COVID-19 levy, citing these taxes as burdens on businesses and consumers. Conversely, the survey highlights a strong endorsement for the 24-Hour Economy Policy, with 72% of respondents expressing support for its implementation. This policy is seen as a potential catalyst for economic growth and job creation. Overall, there is a prevailing optimism among businesses, with 80% expressing confidence in the new government’s ability to steer the economy towards recovery through tax relief and the successful rollout of this 24-hour economic model. This survey, conducted through a combination of face-to-face interviews and online instruments, captures the perspectives of 233 businesses across various sectors and sizes, offering a representative snapshot of the business community’s priorities and concerns.
While acknowledging the desire for tax relief, the survey also recognizes the potential revenue shortfall that would result from abolishing the E-levy and COVID-19 levy. Businesses, therefore, propose several alternative revenue-generating measures for the government to consider. These include broadening the tax base to encompass the informal sector, a traditionally challenging area to tax effectively. The reintroduction of road tolls is also suggested as a potential revenue stream, along with the privatization or divestment of underperforming State-Owned Enterprises (SOEs). This latter recommendation aligns with a broader push for greater efficiency and reduced reliance on public sector entities that may be draining government resources. Finally, the survey participants suggest a comprehensive review of existing tax policies to identify potential areas for optimization and increased revenue generation.
Beyond revenue generation, the survey emphasizes the importance of creating an enabling environment to maximize the potential of the 24-Hour Economy Policy. Businesses stress the need for enhanced security and public safety measures to ensure a conducive atmosphere for round-the-clock operations. A stable electricity supply is identified as a crucial factor, as power outages can significantly disrupt businesses and hinder economic activity. Improvements in transport and infrastructure are also deemed essential for facilitating the smooth flow of goods and people throughout the day and night. Additionally, businesses advocate for targeted tax incentives to encourage investment and participation in the 24-hour economy. These recommendations collectively highlight the interconnectedness of various policy areas and the need for a holistic approach to fostering economic growth.
Confirming the business community’s anticipation, the government, through the Minister of State for Government Communications, Felix Kwakye Ofosu, announced the abolition of the E-levy and COVID-19 levy in the upcoming 2025 budget. This decision fulfills a key promise within the government’s 120-day Social Contract, which sets out 26 pledges aimed at economic revitalization and alleviating the financial burden on citizens. The removal of these taxes signals the government’s responsiveness to public concerns and its commitment to fostering a more favorable economic environment. This move also aligns with the broader objective of streamlining the tax system and reducing complexities that may hinder business operations and economic growth.
The government’s commitment to its Social Contract extends beyond the removal of the E-levy and COVID-19 levy. The 10% tax on bet winnings and the emissions levy are also slated for removal within the first 90 days of the administration. These measures underscore the government’s focus on reducing tax burdens across various sectors and activities. Furthermore, a review of taxes and levies on vehicles and equipment imported for industrial and agricultural purposes is planned, demonstrating a recognition of the importance of these sectors to the Ghanaian economy. By addressing these tax-related concerns, the government aims to create a more conducive environment for investment, production, and economic growth.
The upcoming budget also outlines several other key initiatives aimed at stimulating economic activity and improving social welfare. The launch of the 24-Hour Economy Policy, strongly supported by the business community, is a central component of the government’s economic agenda. This policy is expected to create new opportunities for businesses, generate employment, and boost economic output. In the education sector, the government plans to implement a ‘No-Academic-Fee’ policy for all first-year students in public tertiary institutions. This measure aims to increase access to higher education and develop a skilled workforce for the future. Additionally, the establishment of a Women’s Development Bank and key job creation programs are planned, further demonstrating the government’s commitment to inclusive economic growth and social development. These initiatives collectively represent a comprehensive approach to addressing various economic and social challenges facing Ghana, with a focus on stimulating growth, creating opportunities, and improving the well-being of its citizens.
