Finance Minister Announces Tax Reforms in 2025 Budget, Fulfilling NDC Campaign Pledges

In a significant move to alleviate the financial burden on citizens, the Minister for Finance, Dr. Cassiel Ato Forson, has announced the abolition of several controversial taxes during his presentation of the 2025 budget statement in Parliament today. The decision fulfills a key campaign promise made by the National Democratic Congress (NDC) during the 2024 general elections.

Among the taxes to be abolished are the 10% withholding tax on lottery winnings, commonly referred to as the betting tax, the 1% electronic transactions levy (e-levy), the emissions levy, the Value Added Tax (VAT) on motor vehicle insurance, and the 1.5% withholding tax on the mining of unprocessed gold by small-scale miners. These taxes had been widely criticized by the NDC during the election campaign, with the party describing them as “nuisance taxes” that placed an unnecessary burden on Ghanaians.

Dr. Forson, addressing lawmakers, emphasized that the removal of these taxes aligns with the government’s commitment to fostering economic relief and improving the livelihoods of citizens. “The Mahama-led government is committed to reducing the financial pressures on Ghanaians and creating an enabling environment for economic growth. The abolition of these taxes is a step towards achieving that goal,” he stated.

The betting tax, introduced by the erstwhile administration, had faced significant backlash from the gaming and lottery industry, with stakeholders arguing that it discouraged participation and stifled growth in the sector. Similarly, the e-levy, implemented in 2023, had been a contentious issue, with critics claiming it disproportionately affected low-income earners and small businesses that relied heavily on digital transactions.

The emissions levy, introduced to combat environmental pollution, and the VAT on motor vehicle insurance had also been criticized for increasing the cost of living and doing business in the country. Small-scale miners, who had been subjected to the 1.5% withholding tax on unprocessed gold, will surely welcome the announcement, as a relief that would boost their operations and contribute to the local economy.

The NDC’s 2024 election campaign had centered on addressing the economic challenges faced by Ghanaians, with the party vowing to remove what it termed “nuisance taxes” if elected. The announcement by Dr. Forson is a fulfillment of that promise.

However, some economic analysts have in recent times raised concerns about the potential revenue shortfall resulting from these tax removals. In response, Dr. Forson has assured that the government had put in place measures to ensure fiscal stability, including improving revenue collection efficiency and plugging loopholes in government expenditure.

The 2025 budget statement also outlined other key initiatives aimed at stimulating economic growth, including increased investment in infrastructure, agriculture, and digital transformation. The government has reiterated its commitment to prudent fiscal management while prioritizing the welfare of citizens.

As the new tax reforms take effect, Ghanaians await their implementation and the anticipated relief they are expected to bring to households and businesses across the country.

Source: GhanaFeed.Com