2025 Budget: Here are all the 6 nuisance taxes the Mahama government has abolished

Ghana’s Finance Minister Dr. Cassiel Ato Forson today announced a number of “nuisance” taxes to be abolished by the government in the coming days.

Presenting the 2025 budget on the floor of parliament, he outlined six controversial taxes that will be scrapped.

This announcement aligns with the National Democratic Congress (NDC) 2024 manifesto pledges to abolish these taxes when voted into power.

Forson emphasised the need for these taxes to be scrapped, stating that these proposed cancellations are key to achieving the country’s fiscal target this year.

He stated:

Government is proposing some revenue measures to achieve the 2025 fiscal targets for the consideration and approval of Parliament.

Subsequently, he went ahead to first announce five taxes that would be abolished immediately by the government.

READ ALSO: Relief for Ghanaians as government abolishes 'annoying' COVID-19 Levy

1. Betting tax

First on his list was the controversial 10% withholding tax on bet winnings introduced by the erstwhile Nana Akufo-Addo government in 2023.

Forson shared:

Mr. Speaker we will abolish the 10% withholding tax on winnings from lottery, otherwise known as the “Betting Tax.

2. E-Levy

The Finance Minister secondly announced the abolishment of the levy on electronic money transfers, otherwise known as E-Levy.

Mr. Speaker we will abolish the Electronic Transfer Levy (E-Levy) of 1%).

3. Emission Levy

The Emission Levy which was passed by Parliament under the Emissions Levy Act, 2023, Act 1112, and became effective from 1 February 2024, is also set to be scrapped.

Mr. Speaker we will abolish the Emission Levy on industries and vehicles.

4. VAT on motor vehicle insurance policy

Furthermore, Forson announced that value-added tax (VAT) on the motor vehicle insurance policy will also be cancelled.

Mr. Speaker we will abolish the VAT on motor vehicle insurance policy.

5. Tax on unprocessed small-scale miners' gold

Last on the immediate taxes to be abolished is the tax on unprocessed small-scale miners' gold.

Mr. Speaker we will abolish the 1.5% withholding tax on winning of unprocessed gold by small-scale miners.

6. COVID-19 Levy

Finally, the finance minister added that the government plans to reform VAT by abolishing, reversing, reducing, and adjusting some taxes. Out of these, the COVID-19 levy is set to be abolished later this year.

According to Forson, 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.

Meanwhile, the government is reducing the current tax refund ceiling by 2 percentage points from 6% to 4% of Total Revenue as defined in Section 69 of the Revenue Administration Act, 2016 (Act 915). 147. This will save GH¢3.8 billion.

Forson shared that 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.

MUST READ: 2025 Budget: Government finally cancels controversial betting tax

Already Ghana has saved GH¢3.8 billion for 2025 alone from only one source and this, according to the finance minister, is enough to close the gap from the taxes that have been removed.