In a bold move aimed at revitalizing the economy, the government has announced the elimination of several taxes in the 2025 budget.
This decision, presented by Finance Minister Dr. Cassiel Ato Forson during his budget address in Parliament, is expected to enhance disposable incomes and foster business growth.
Taxes Abolished
The scrapped taxes include:
- 10% Withholding Tax on Lottery Winnings (“Betting Tax”)
- 1% Electronic Transfer Levy (E-Levy)
- Emission Levy on Industries and Vehicles
- VAT on Motor Vehicle Insurance Policies
- 1.5% Withholding Tax on Unprocessed Gold for Small-Scale Miners
Measures to Stabilize the Exchange Rate
To strengthen the cedi and maintain exchange rate stability, the government will implement the following strategies:
- Establishment of GoldBod: A scheme leveraging Ghana’s gold reserves to boost foreign exchange reserves.
- Continuation of BoG’s Foreign Exchange Forward Auctions: Providing stability in the currency market.
- Fiscal Consolidation Measures: Reducing public sector spending and minimizing the fiscal deficit to ease pressure on the exchange rate.
- Import Substitution under the 24-Hour Economy Policy: Enhancing local production to reduce reliance on imported goods and curb foreign exchange demand.
Strategies to Curb Inflation
In a bid to tackle inflation and reduce the cost of living, the government has rolled out the following initiatives:
- Agriculture for Economic Transformation Agenda: Increasing food production to mitigate food price inflation.
- Targeted Policies to Reduce Essential Costs: Lowering transportation and utility expenses.
- Enhanced Fiscal Discipline: Cutting the fiscal deficit and reducing government borrowing to ease inflationary pressures.
- Exchange Rate Stability: Controlling the cost of imported goods and fuel.
- Supporting BoG’s Monetary Policy and Liquidity Management: Sustaining the disinflation process.
Dr. Forson assured Parliament that these measures will create a more stable economic environment, alleviate the cost of living, and drive sustainable economic growth for Ghanaians.
