A KPMG/UNDP 2025 Pre-Budget Survey has revealed that over 50% of businesses are calling for the removal of the E-levy and COVID-19 levy, while a substantial 72% of respondents support the implementation of the 24-Hour Economy Policy.
The findings also show that 80% of respondents are confident that the new government’s policies in the 2025 budget will drive economic recovery. This optimism is largely based on anticipated tax relief and the successful rollout of the 24-hour economy.
The survey which was conducted via face-to-face interviews and online instruments from 11th to 21st February 2025, gathered insights from 233 leading large, small, and medium-sized businesses across 10 sectors in Ghana on the impact of current policies and to offer actionable feedback to the government through the Ministry of Finance for the upcoming budget and future cycles.
However, abolishing the proposed taxes is expected to create a substantial revenue shortfall. Respondents therefore suggested that the government should explore alternative revenue sources while prioritising expenditure reduction.
Key recommendations include expanding the tax base to incorporate the informal sector, reintroducing road tolls, privatising or divesting underperforming State-Owned Enterprises (SOEs), and reviewing existing tax policies.
Furthermore, respondents emphasised the need for an enabling environment to maximise the benefits of the 24-hour economy policy. They recommend that the government enhance security and public safety, ensure a stable electricity supply, improve transport and infrastructure, and offer tax incentives to businesses.
Meanwhile, the Minister of State for Government Communications, Felix Kwakye Ofosu, has confirmed that the government will abolish the E-Levy and the COVID levy in the upcoming 2025 budget, set to be presented on Tuesday, March 11, 2025.
These measures form part of the government’s 120-day Social Contract, which outlines 26 key pledges aimed at revitalising the economy and easing the financial burden on citizens.
Among the commitments are the removal of the E-Levy, the COVID levy, a 10% tax on bet winnings, and the emissions levy—all within the administration’s first 90 days in office.
Addressing journalists in Accra on Friday, March 7, Ofosu also revealed plans to review taxes and levies on vehicles and equipment imported for industrial and agricultural purposes.
He further highlighted the government’s intention to launch the 24-Hour Economy Policy and implement a ‘No-Academic-Fee’ policy for all first-year students in public tertiary institutions. Additionally, the first budget will introduce the establishment of a Women’s Development Bank and key job creation programmes.
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