Finance Minister Dr Cassiel Ato Forson has laid before Parliament a bill to abolish several taxes, including the Electronic Transaction Levy (E-Levy), the COVID-19 Levy, and the 10% tax on lottery winnings, commonly referred to as the betting tax.

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Finance Minister Dr. Cassiel Ato Forson earlier emphasized the need for a swift legislative process to abolish the taxes.

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He expressed confidence that repealing these taxes would be straightforward due to their simplicity.

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“Repealing the taxes will be one clause each. Repealing the betting tax is very easy, the e-levy and all of those things we are repealing are quite easy,” he added.

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The Finance Minister explained that since the bills fall under revenue legislation, they qualify to be laid before Parliament under a certificate of urgency.

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“It’s a revenue bill, and under the Constitution, you have any way to lay finance bills under a certificate of urgency,” he explained.

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The proposal to eliminate these taxes aligns with the Mahama-led government’s commitment to scrapping what it describes as "nuisance taxes" implemented by the previous Akufo-Addo administration.

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While presenting the 2025 Budget Statement to Parliament on March 11, Dr. Forson officially announced the plan to repeal multiple taxes.

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“Mr. Speaker, we will abolish the 10% withholding tax on winnings from lotteries, otherwise known as the ‘betting tax.’ We will abolish the Electronic Transfer Levy (E-Levy) of 1%. We will abolish the emission levy on industries and vehicles. We will abolish the VAT on motor vehicle insurance policies. And we will abolish the 1.5% withholding tax on the sale of unprocessed gold by small-scale miners,” he stated.

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He noted that these tax removals aim to alleviate financial burdens on households while boosting business growth and improving tax compliance.

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“...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,” he added.

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So far, the government has announced the removal of six taxes: the 10% betting tax, the 1% E-Levy, the emission levy on industries, VAT on motor insurance, the 1.5% withholding tax on unprocessed gold sales, and the COVID-19 levy. These tax repeals will take effect once the 2025 budget is passed by Parliament.

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Despite the anticipated relief for individuals and businesses, some experts and analysts have raised concerns about the potential impact on Ghana’s already struggling economy. In response, the government has outlined measures to mitigate the revenue shortfall, including adjustments to the tax refund ceiling.

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“Mr. Speaker, by reducing the ceiling on the tax refund from 6% to 4%, we will save GH¢3.8 billion. This amount is enough to close the revenue shortfall from the removal of the E-Levy, amounting to GH¢1.9 billion, and the betting tax of GH¢180 million,” Dr. Forson stated.

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Meanwhile, government revenue reports indicate that by the end of 2024, approximately GH¢6.4 billion had been collected from the COVID-19 Health Recovery Levy, GH¢246.9 million from the E-Levy, and about GH¢120 million from other levies.

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The fate of the proposed tax abolitions now rests with Parliament, as the government pushes for an expedited legislative process to implement these changes.

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