Mahama Government to Scrap Six Major Taxes in 2025—Here’s the Full List
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced the government’s plan to eliminate several controversial taxes in the coming months.
During his 2025 budget presentation in Parliament, Dr. Forson outlined six key taxes that will be abolished, a move that aligns with the National Democratic Congress (NDC)’s 2024 manifesto promises. He emphasized that scrapping these taxes is essential to meeting the country’s financial targets and easing the burden on citizens.
Here Are the Six Taxes Set to Be Abolished:
1. Betting Tax
The government will remove the 10% withholding tax on lottery and betting winnings, which was introduced in 2023. This decision comes after widespread criticism of the tax, which many saw as unfair to bettors.
2. E-Levy
The controversial tax on electronic money transfers, commonly known as the E-Levy, will also be scrapped. Initially set at 1%, the levy has been a source of public frustration since its introduction.
3. Emission Levy
The Emissions Levy, which took effect in February 2024 and applied to industries and vehicles, will no longer be in place.
4. VAT on Motor Vehicle Insurance
The government will abolish value-added tax (VAT) on motor vehicle insurance policies, reducing costs for vehicle owners.
5. Tax on Small-Scale Miners’ Gold
The 1.5% withholding tax on unprocessed gold from small-scale miners will be removed, a move aimed at supporting the mining sector.
6. COVID-19 Levy
As part of the government’s broader tax reforms, the COVID-19 levy will be phased out later this year.
How This Will Impact Ghana’s Economy
Dr. Forson explained that these tax cuts will provide financial relief to households, boost business growth, and improve tax compliance.
To balance revenue loss from these removals, the government is adjusting the tax refund ceiling from 6% to 4%, saving the country GH¢3.8 billion in 2025. This, he noted, is more than enough to cover the GH¢1.9 billion shortfall from the scrapped E-Levy and the GH¢180 million loss from the betting tax.
With these changes, the Mahama administration aims to create a fairer tax system while keeping Ghana’s economy on track.
