By Alex Ababio
Finance Minister Dr. Cassiel Ato Forson has announced the removal of five nuisance taxes as part of the government’s revenue measures under the 2025 Budget, presented to Parliament.
Speaking in Parliament on Tuesday, March 11, 2025, Dr. Forson stated that the decision aligns with the government’s manifesto pledge and its commitment to alleviating financial pressures on citizens and businesses.
While reaffirming the government’s goal to increase non-oil tax revenue by 0.6 percentage points of GDP under the IMF-supported program, he noted that scrapping these taxes would boost disposable incomes, support business expansion, and enhance tax compliance.
The five taxes set for removal include:
The 10% withholding tax on lottery winnings (Betting Tax).
The 1% Electronic Transfer Levy (E-Levy).
The Emission Levy on industries and vehicles.
The VAT on motor vehicle insurance policies.
The 1.5% withholding tax on unprocessed gold winnings by small-scale miners.
Dr. Forson stressed that eliminating these taxes would ease financial strain on households and stimulate economic activity.
Misuse of Tax Refund Funds Exposed
The Finance Minister also raised concerns over the mismanagement of the Tax Refund Account. He revealed that over the past eight years, GHS16.6 billion—accounting for 57% of the fund—had been misapplied, violating the Revenue Administration Act, 2016 (Act 915), and the Public Financial Management Act, 2016 (Act 921).
To curb further abuse, the government is lowering the tax refund ceiling from 6% to 4% of total revenue, in line with Section 69 of the Revenue Administration Act.