The Ghanaian government is considering removing key taxes, including the e-levy, betting tax, and emission levy, in response to concerns that they burden businesses and individuals. However, these taxes contribute significantly to government revenue, raising concerns about how the state will compensate for the potential shortfall. Experts suggest that the government may either introduce alternative taxes or cut public spending to bridge the gap.
During the Deloitte Ghana 2025 Tax and Regulatory Outlook webinar, tax expert Gideon Ayi Owoo highlighted the implications of eliminating these taxes. He noted that while the current government views them as a nuisance, they were originally implemented to generate revenue from sectors such as gaming. Businesses should prepare for possible new taxes aimed at offsetting lost revenue.
Beyond direct taxes, import duties have been a critical revenue source but have also contributed to inflation. Policymakers and industry leaders are debating whether lowering these taxes could stimulate industrial growth and support local agribusiness. However, the challenge remains in balancing lower import duties with the need for government funding.
The potential policy shift means businesses must stay prepared for changes in the tax regime. Some experts predict that alternative taxes, such as broader consumption levies or corporate tax adjustments, could be introduced. However, Finance Minister Dr. Cassiel Ato Forson has dismissed claims that new taxes are necessary, emphasizing improved tax compliance as a means to boost revenue.
The Deloitte Ghana webinar underscored the importance of tax policies in economic management. While eliminating certain levies could ease business operations, doing so without a clear revenue replacement strategy could strain the country’s fiscal stability. As businesses and individuals await further clarity, they brace for potential tax adjustments in other areas.
Source: Graphic