The Government of Ghana has announced the abolition of several controversial taxes, including the 10% withholding tax on betting winnings, the 1% Electronic Transfer Levy (E-Levy), and the Emission Levy on industries and vehicles, in a move aimed at alleviating the financial burden on citizens and businesses.
Finance Minister Dr. Cassiel Ato Forson, presenting the 2025 Budget Statement in Parliament, emphasized that these tax cuts align with the government’s commitment to economic reset, job creation, and fiscal discipline under President John Dramani Mahama’s administration.
“The removal of these taxes will ease the burden on households, improve disposable incomes, and support business growth while enhancing tax compliance,” Dr. Forson stated.
In addition to the scrapping of the betting tax, E-Levy, and Emission Levy, the government has also abolished:
• VAT on motor vehicle insurance policies
• 1.5% withholding tax on unprocessed gold sales by small-scale miners
These reforms are expected to stimulate economic activity, particularly in sectors affected by excessive taxation.
To address concerns over potential revenue shortfalls, the government has implemented strategic fiscal measures. A key decision is to reduce the ceiling on the tax refund from 6% to 4%, which will save GH¢3.8 billion. This move is expected to fully cover the estimated GH¢1.9 billion revenue loss from the E-Levy removal and GH¢180 million from the betting tax elimination.
Additionally, the government will increase the Growth & Sustainability Levy from 1% to 3% on the gross production of mining companies. This measure aims to ensure Ghana benefits more significantly from rising global gold prices, securing additional revenue to support national development.
The scrapping of the E-Levy marks the fulfillment of a key campaign promise by the Mahama-led administration. The unpopular tax, which imposed a levy on electronic financial transactions, had faced public backlash since its introduction. Similarly, the betting tax had been widely criticized by youth groups and industry players, who argued it discouraged participation in the sector.
Industry leaders and economic analysts have welcomed the tax cuts, viewing them as a necessary step to boost consumer spending, financial inclusion, and business expansion.
With these sweeping tax reforms and revenue-enhancing strategies, the government signals its commitment to reducing economic hardship, restoring investor confidence, and fostering a more business-friendly environment.
