In a move to alleviate the economic hardship on ordinary citizens, Ghana’s government announced the removal of several taxes tied to its International Monetary Fund (IMF) bailout.
Finance Minister Cassiel Ato Forson revealed the decision during the presentation of the 2025 budget on Tuesday.
The five “nuisance levies” abolished include a one-percent tax on mobile money transfers, a value-added tax on motor vehicle insurance, and a 10-percent tax on lottery winnings.
Also scrapped are the emission levy on industries and vehicles, and a 1.5-percent tax on unprocessed gold from small-scale miners.
These taxes were introduced by the previous administration as part of efforts to secure a $3 billion IMF bailout, which was finalized in 2023.
The current government, led by President John Mahama, argues that the levies placed an undue burden on citizens already grappling with soaring inflation and a depreciating currency.
In his address to lawmakers in Accra, Forson emphasized that the tax cuts would improve disposable incomes and support business growth.
“The removal of these taxes will ease the burden on households,” he said.
Despite the removal of these levies, concerns remain about how the government will address the resulting revenue shortfall.
Authorities are exploring alternative measures to bolster tax collection, including amending the Revenue Administration Act and enhancing road toll collection as part of the “Big Push” infrastructure development initiative.
The government’s focus is on improving the economy, with Forson assuring lawmakers that the new administration had “stopped the bleeding” of the nation’s finances.
