Finance Minister Dr. Cassiel Ato Forson has announced the abolition of five major taxes, whilst one other will be reviewed as part of the 2025 Budget presentation in Parliament.
Speaking on the floor of the House, he outlined key fiscal reforms aimed at easing the financial burden on households, improving disposable incomes, and boosting business growth.
Outlining the government’s tax relief measures, Dr. Forson stated:
- “We will abolish the 10% withholding tax on winnings from lottery, otherwise known as the betting tax.”
- “We will abolish the e-levy of 1%.”
- “We will abolish the emission levy.”
- “We will abolish the VAT on motor vehicle insurance policy.”
- “We will abolish the 1.5% withholding tax on unprocessed gold by small-scale miners.”
TAXES TO BE REVIEWED
The COVID-19 levy is set to be reviewed as part of the government’s fiscal reforms.
Finance Minister Dr. Cassiel Ato Forson announced that a dedicated task force would be established to assess the tax and engage stakeholders on its future.
“I will inaugurate a V80 Reform Taskforce to hold broad consultations with key stakeholders for their input. Their priorities will include abolishing the COVID levy. This will be completed this year,” he stated.
In addition to the tax cuts, Dr. Forson revealed the government’s strategy to transition to more cost-effective energy sources.
“We will implement the liquid fuel to gas swap through an increase in gas supply from 60mnsc to 100mnsc to take advantage of cheaper gas prices,” he said.
He further emphasized that “the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance.”
