The National Democratic Congress (NDC), through its General Secretary, Fifi Fiavi Kwetey, has reiterated its dedication to improving the lives of all Ghanaians. Kwetey emphasized the party’s consistent focus on people-centered policies, highlighting their commitment to prioritizing the welfare of citizens above all other considerations. This commitment, according to Kwetey, translates into tangible actions and policies designed to alleviate burdens, generate opportunities, and foster sustainable economic growth. The party’s recent actions, especially concerning tax reforms presented in the 2025 budget statement, are showcased as concrete examples of this people-first approach.
The NDC’s claims are substantiated by several key tax cuts outlined in the budget. The abolition of the 1.5% withholding tax on unprocessed gold extracted by small-scale miners is a prime example. This measure aims to bolster the mining sector, a vital component of the Ghanaian economy, and empower local miners by reducing their tax burden, allowing them to reinvest more capital in their operations and potentially create more jobs within their communities. This targeted tax relief recognizes the significant role small-scale mining plays in providing livelihoods and contributing to the national economy. By reducing this tax, the NDC aims to stimulate growth and improve the economic prospects of those involved in this sector.
Furthermore, the removal of the 10% betting tax demonstrates the NDC’s commitment to fairness and support for young entrepreneurs and businesses operating within the gaming industry. This tax, according to the NDC, placed an undue burden on this emerging sector, hindering its growth potential. By eliminating it, the government intends to create a more level playing field for businesses in the gaming industry, encouraging investment and job creation. This move also acknowledges the growing popularity of the gaming industry among the youth and seeks to promote its responsible development as a legitimate source of economic activity.
One of the most significant tax cuts announced is the complete elimination of the controversial 1% e-levy. This levy, introduced by the previous administration, had been widely criticized for its perceived negative impact on digital transactions and its disproportionate burden on lower-income earners. By removing it, the NDC government aims to reduce the financial strain on citizens and promote the wider adoption of digital transactions, contributing to a more inclusive digital economy. This action underscores the NDC’s commitment to easing financial burdens and modernizing the economy.
In addition to these tax cuts, the government also removed the emissions levy, which it argued imposed unnecessary costs on both businesses and consumers. This levy, intended to address environmental concerns, was deemed to be hindering business operations without delivering the desired environmental outcomes. Its removal reflects the NDC’s commitment to finding a balance between environmental protection and economic development, seeking more effective and less burdensome ways to achieve environmental goals.
The removal of these taxes naturally raised concerns about potential revenue shortfalls and their impact on government finances. However, Finance Minister Dr. Cassiel Ato Forson addressed these concerns, explaining that the government had identified measures to offset the anticipated revenue loss. Specifically, the government plans to reduce the ceiling on tax refunds from 6% to 4%, a move projected to save GH¢3.8 billion.
This substantial saving, according to Dr. Forson, is sufficient to cover the revenue shortfall resulting from the elimination of the e-levy (GH¢1.9 billion) and the betting tax (GH¢180 million). The fact that this single measure is expected to generate savings exceeding the combined revenue loss from the eliminated taxes demonstrates the government’s proactive approach to fiscal management and its commitment to responsible financial governance. By finding alternative revenue streams, the government aims to ensure that the tax cuts do not compromise the nation’s fiscal stability.
In conclusion, the NDC, through its recent budget proposals and policy pronouncements, is emphasizing its commitment to a people-centered approach to governance. The targeted tax relief measures, coupled with strategies to mitigate potential revenue shortfalls, aim to stimulate economic growth, empower various sectors of the economy, and improve the lives of ordinary Ghanaians. The party’s emphasis on these policy changes serves to underscore its commitment to delivering on its promises and prioritizing the welfare of the citizens it serves. By implementing these reforms, the NDC aims to create a more equitable and prosperous Ghana for all.
