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Full list of taxes scrapped in 2025 budget
The government has announced the abolition of several taxes in the 2025 budget.
Finance Minister Dr. Cassiel Ato Forson outlined the tax cuts during his budget presentation in Parliament, emphasizing the positive impact these measures will have on disposable incomes and business growth.
These taxes include the following:
- 10% withholding tax on winnings from the lottery, otherwise known as the “Betting Tax”;
- Electronic Transfer Levy (E-Levy) of 1%;
- Emission Levy on industries and vehicles;
- VAT on motor vehicle insurance policy; and
- 1.5% withholding tax on winning unprocessed gold by small-scale miners.
Measures to stabilize the exchange rate
To enhance exchange rate stability, the government will:
- Establish GoldBod, a scheme to increase foreign exchange reserves by leveraging Ghana’s gold resources to support the cedi.
- Continue the BoG’s foreign exchange forward auctions to provide stability to the currency market.
- Undertake strong fiscal consolidation, including reduced public sector spending and a lower fiscal deficit, to ease exchange rate pressures.
- Promote import substitution under the 24-Hour Economy Policy, boosting domestic production of key goods currently imported, thereby cutting down foreign exchange demand.
Strategies to reduce inflation
The government is also rolling out initiatives to tackle inflation, including
- Implementing the Agriculture for Economic Transformation Agenda to boost food production and curb food price inflation.
- Introducing targeted policies to reduce the costs of essential items such as transport and utilities, which have a significant impact on inflation.
- Strengthening fiscal consolidation efforts to reduce the fiscal deficit and government borrowing, which will help lower inflationary pressures.
- Ensuring exchange rate stability, which will help control the cost of imported goods and fuel.
- Supporting the BoG’s monetary policy stance and liquidity management interventions to sustain the disinflation process.
Dr. Forson assured Parliament that these measures are designed to bring lasting relief to Ghanaians by creating a more stable economic environment, reducing the cost of living, and ensuring sustainable growth.
