The Mahama-led government has fulfilled its promise to remove several taxes described as "nuisance taxes" introduced by the previous Akufo-Addo administration.

Finance Minister Cassiel Ato Forson confirmed this during his presentation of the 2025 fiscal budget in Parliament on Tuesday, March 11, 2025.

“Mr. Speaker: We will abolish the 10% withholding tax on winnings from lottery, 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 policy; and we will abolish the 1.5% withholding tax on winning of unprocessed gold by small-scale miners,” he said.

He explained that removing these taxes would ease the financial burden on families and give them more disposable income. Additionally, businesses would benefit, and tax compliance would improve.

“…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.

From the Minister’s presentation, six taxes and levies have been scrapped so far. They include the 10% Betting Tax, the 1% E-Levy, the Emission Levy on industries, the VAT on motor insurance, the 1.5% withholding tax on unprocessed gold sales, and the COVID-19 Levy.

However, the removal of these taxes will take full effect only if Parliament approves the 2025 budget.

Some experts and concerned individuals have warned about the potential impact of these tax cuts on Ghana’s struggling economy. However, the government plans to adjust the ceiling on tax refunds to offset the revenue shortfall from the abolished E-Levy.

“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,” he stated.

Meanwhile, the government collected approximately GH¢6.4 billion from the COVID-19 Health Recovery Levy, GH¢246.9 million from the E-Levy, and about GH¢120 million by the end of 2024.