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2025 Budget: The abolition of taxes is a favorable decision in the interest of the people – Tax Practitioner
Professor Foster Amoako, an esteemed tax practitioner, has characterized it as the most advantageous decision for the benefit of Ghanaians for the John Dramani Mahama administration to abolish approximately five taxes instituted by the previous NPP administration, thereby alleviating the burden on the populace.
The recent budget presented by the finance Minister revealed the abolition of 10% withholding tax on winnings from Betting known as 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 of unprocessed gold by small-scale miners.
Professor Foster Amoako underscored that the abolition of the 1.5% withholding tax on the winnings of unprocessed gold by small-scale miners is an astute decision, one that will deter gold smuggling into neighboring countries and ensure a greater proportion of gold remains within the nation, thereby allowing the country to reap the requisite benefits. He emphasized that the elimination of other taxes will alleviate the financial burden on the populace.
Furthermore, he noted that the government’s decision to introduce road tolls and increase the Growth and Stability Levy from 1% to 3% will assist in generating revenue to compensate for the abolished taxes.
Professor Foster Amoako observed that approximately 90% of funding for governance is derived from taxation. Consequently, Ghana’s predicament lies in the ineffectiveness of its tax laws, rendering it challenging for the nation to generate revenue through this means. Therefore, the government must strive to broaden the tax base to ensure a larger segment of the populace contributes, thereby enhancing the Internally Generated Funds (IGF) for more effective governance.
Story By: Kwaku Mensah Abrampa (GIFTs FM-Dormaa Ahenkro)