Dr Cassiel Ato Forson is the Minister of Finance
During the 2025 budget presentation, Minister of Finance Dr. Cassiel Ato Forson hinted at the government’s plans to abolish several nuisance taxes that were implemented under the previous New Patriotic Party (NPP) government.
According to him, the cancellation of these taxes is intended to ease the burden on households, promote and support the growth of businesses in the country, and improve tax compliance.
Addressing the floor of Parliament on Tuesday, March 11, 2025, Dr. Forson indicated that the government is proposing revenue measures to help achieve the 2025 fiscal targets.
He also highlighted that these measures are aimed at bridging the gaps and offsetting the revenue losses that will arise following the abolishment of these taxes.
Although the minister did not explicitly provide a specific timeline for the cancellation of these taxes, he assured that the promise made during the NDC’s campaign to abolish these taxes would be fulfilled.
Let’s take a look at the taxes that the government plans to abolish:
Electronic Transfer Levy (E-Levy)
The government has announced plans to abolish the 1% levy imposed on electronic transfers.
The charges were applied to mobile money transfers between wallets on the same electronic money issuer, transfers from a wallet on one electronic money issuer to a recipient on another, transfers from bank accounts to mobile money wallets, transfers from mobile money wallets to bank accounts, and bank transfers on an instant pay digital platform or application originating from an individual’s bank account.
Betting tax
The 10% withholding tax on winnings from lottery and betting was also introduced by the former government.
This tax, which is automatically deducted at the point of payout for all betting, games, and lottery wins, faced intense opposition from the general public.
Emission Levy
The Emission Levy taxes carbon emissions from vehicles and certain industries. It was designed to raise revenue to support various sector reforms and promote the green economy.
VAT on motor vehicle insurance policy
A 21% VAT rate on non-life insurance was announced during the 2024 budget by the former government.
The levy aimed at insurance firms will implement a 21% VAT on the supply of non-life products, impacting various insurance categories, including Motor Insurance, Fire, Liability Insurance, Marine Insurance, and compulsory insurance.
Tax on winning of unprocessed gold by small-scale miners
The Minerals and Mining Operations Tax (Mineral Royalty) imposed on the income of individuals or entities engaged in mineral operations saw a tax rate of 5%.
The rate is applied to the total revenue earned from mining operations.
MAG/EB
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